* People using it as a tool, aware of its limitations and treating it basically as intern/boring task executor (whether its some code boilerplate, or pooping out/shortening some corporate email), or as tool to give themselves summary of topic they can then bite into deeper.
* People outsourcing thinking and entire skillset to it - they usually have very little clue in the topic, are interested only in results, and are not interested in knowing more about the topic or honing their skills in the topic
The second group is one that thinks talking to a chatbot will replace senior developer
No one is going to replace senior developers. But senior developer pay WILL decrease relative to its historical values.
Not necessarily, there are many factors at play here which are downplayed. The first one is education: LLMs are going to significantly improve skill training. Arguably, it is already happening. So the gap between you and a middev will get narrower. At the same time, candidates who can be as good as you will increase.
While you can argue that you possess specialised skills that not many do, you are unlikely to prove that under pressure within a couple of hours and certainly not to the level where you can have late 10s level of negotiating power imo.
At the end of the day, the market can stay irrational longer than you can continue refuse to accept a lower offer imo. I believe there will be winners. But pure technical skill isn't the moat you think it is. Not anymore.