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Notes -
I mostly agree with you, but I could also see software engineers going the way of the draftsmen: There used to be a huge sector that focused entirely on taking an engineer's ideas, and turning them into drawings on paper so they could be handed out to the clients. Then Computer Aided Drafting (CAD) software came about, productivity skyrocketed, and the demand for drawings rose modestly. Now there's a small sector focused on drafting, and some fraction engineers do their own drafting in the design stage.
Let's use your example of 40-60x increases in productivity, and imagine that competition keeps salaries at their current level. What if demand for software products only increases by 1000% due to the reduced job prices? The field could shrink to one fifth the size and still meet demand.
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