I think your points make sense but you are forgetting that the demand for a certain skill isn't constant. So, while it's true that there are many people who can code entering the workforce, it doesn't imply software development being a poor choice of a profession if the demand for them is also going up.
And from what everyone seems to be saying, the increase in supply has still not yet hit the demand.
And from what everyone seems to be saying, the increase in supply has still not yet hit the demand.