No, firms will need to do much more leetcode as the signaling value of a degree decreases.

Do product managers become worthless at companies where coders understand algorithms? Or what is your point?

Having an abundance of talented developer labor so even money losing companies can afford to buy it is not a problem that exists in the world.

What usally happens now is that developers leave if there are no customers, but yes, if we ever reach that state where even the companies with the worst products can hire the best developers, then wages will have fallen quite a bit.