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.

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.

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

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.

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

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.