The reason why people don't get it has to do with the sorry state of neoclassical economics with its absurd assumption of perfectly divisible goods and how all

The reason why people don't get it has to do with the sorry state of neoclassical economics with its absurd assumption of perfectly divisible goods and how all the skills are averaged into every worker (everyone is a 2% software developer rather than 2% of the population being a software developer). This means when you fly on a 747, you're building a millionth of a 747 and are flying that. You don't actually need to build a full 747. Then there is the doctrine of static comparative advantage, where basically all traits are geographic or inborn and unchanging. If someone builds an SaaS, you can always claim that you have a unique comparative advantage for the particular industry you are working in so you always know better what kind of niche software requirements you have. Meanwhile if you take a simple liquidity theory oriented approach you realize something very obvious: borrowers promise a big illiquid chunk of real physical capital that can only exist as one big monolithic unit and the bank creates a corresponding liquid asset in the form of coupons that can be used to acquire just a fraction of the monolithic unit. The airline buys a 747 using borrowed money, thereby making your dollar a fraction of a 747. From this perspective it is completely obvious why specialization exists: You only need a fraction of the full investment. If everyone were to buy a personal 747, they might be able to fly, but each 747 has a 0.000001% utilization. Each 747 is a 99.999999% unconsumed asset that can be sold. Specialization occurs because you can bundle these fixed costs and the higher utilization leads to a lower cost per flight because you're not constantly buying 747s for a single flight. If you see that someone else already has a 747, it is economically illogical for you to buy one even if you could afford the full 747, because you could just pay the cost of a single flight instead. Outsourcing (=specialization) occurs whenever you do not consume the full output of a fixed investment. It's that simple. Now flip the script and assume you're an airline that is constantly running their aircraft at maximum or near maximum utilization? You would never rent the aircraft and just own them outright. You're consuming the full output of the aircraft. If you apply this same logic to a SaaS company you end up with the same conclusion: You can vibe code it, but your utilization rate is going to be way less than 10% of what you could pull out of the vibe coded software. Hence even with vibe coding, it would be in your interest to just let someone else vibe code the software on your behalf. If vibe coding works it doesn't change the idea of SaaS, it just creates a race to the bottom in terms of margins and cost for the end user.