This blog post explores the evolving economics of software development in light of dropping costs and the proliferation of AI tools for coding. It argues that while the cost of building software has decreased, the value of existing software may also be declining as competition increases and the ease of copying and customizing software has risen. The author raises concerns about the sustainability of high profit margins in the software industry and examines concepts like Jevons paradox and Baumol's cost disease in this context. Ultimately, the post questions the future viability of traditional SaaS models and the pricing strategies of software companies.