On the other hand, it shows how much coding is just repetition. You don't need to be a good coder to perform serviceable work, but you won't create anything new and amazing either, if you don't learn to think and reason - but that might for some purposes be fine. (Worrying for the ability of the general population however)
You could ask whether these students would have gotten anything done without generated code? Probably, it's just a momentarily easier alternative to actual understanding. They did however realise the problem and decided by themselves to write their own code in a simpler, more repetitive and "stupid" style, but one that they could reason about. So hopefully a good lesson and all well in the end!