I'm not convinced that is true. The JCB digger didn't put groundworkers out of business. A consultant that can get more done in a day is worth a lot more than one who can't. There is still skill required in wielding the tool of the day and that skill is marketable.
Sorry, I don't think your non-software analogy that existed before 2025 helps at all in this specific topic about software consultancy.
Meanwhile, people are in fact making actual money solving problems for others by building use-case-specific solutions. Perhaps you’re unaware of them, but they do exist. They prefer to operate off the radar.