I have over 25 years of development experience. My current role is vice president of development and architecture where I lead a team of 80+ devs, QAs, and architects. By any measure, I am one of those "engineer level" developers you speak of.

Yes, LLMs are a tool, but it's a tool one should use sparingly. LLMs are pattern recognition machines and are great for routine, been-there-done-that type development. For anything that deviates from the norm, LLMs will try to force everything back into common patterns... even when those patterns are not correct. A well designed system can be mangled into junk because the LLM doesn't have enough context or because something is new.

Be skeptical of the rave reviews around coding agents and the use of LLMs for development. Much of the hype seems tied to developer skill. Less capable developers can use LLMs to appear more capable than they are. For good developers, LLMs seem to erode their skills as they rely on the tool instead of their own knowledge. I have seen this first hand.

Overall, it seems LLMs raise skills of bad developers and hamper the skills of good developers. It's creating a bunch of middling developers who are incapable of handling anything novel or complex.