There is likely 2-orders of magnitude demand for more software than currently exists. Speaking for myself, I have so many different apps I would like to have but would not be commercially viable to build because the problem it solves is very specific to my circumstance. The ROI now makes sense now that I can spin up Claude Code and build apps for these use cases in an a couple of hours so I have a suite of apps that are really just for me.

Probably less, actually.

Most of what passes for "software" these days is basically some niche hardcoded workflow that falls to pieces if you try to do anything even the slightest bit different.

Currently we have a cycle of obsoleting hardware necessitating re-inventing software for the new platforms. So technically, yes.

I think Jevons Paradox applies here: as software becomes cheaper and more efficient to produce (especially with LLMs), the demand for it actually increases rather than decreases.

It's not rare that I wish there were software that would do something, but it doesn't exist or what does exist is terrible. So yes, there is at least some need and demand for more software.

I think, there are still tools that makes people live better.

There's a discovery problem, and with AI tools, it's easier to write your own than discover if a particular tool is what you want.