Engineers aren't the target audience for Lovable. I see it being used by designers and product managers, and also solopreneur type people, or non-technical folks wanting to build websites or start companies.
One PM I know uses it for designing prototypes then handing them off to the engineering team who then continue them in Claude Code etc.
So it's sorta of competing with Wix, Squarespace, Wordpress, and also prototyping tools like Figma.