I agree that driving down pricing gets you customers you don't want, but LLM-written software changes the game. If it cost $100,000 to build a thing before, and now it costs $10,000 to build it with AI, your upstart competitor can charge $50 for something good enough to be competitive to your $199.
Maybe. But maybe not.
Firstly, writing the code is perhaps only 10% of the product cost (over its lifetime.) Support, marketing, adjusting, debugging, handling edge cases and so on are where most of the costs lie.
In my case brighter folks than me wrote very good code in the same space. But taking working ode and turning it into a generic product is a lot of work.
Think of it like building a landing strip for your plane. If you're the only one landing there, then the specs are simple, and tight. You need little more than a grader and a building big enough for your plane. But if you're building an airport (think, say, JFK) you have to cater for everything from a Cessna to a Dreamlifter.
A LLM can certainly speed things along. But I wouldn't want to build based on LLM foundations. Long term support and maintainability would scare me.