I agree and it's why I personally invest so much time with things like Nix. Nix offers a solution to being able to do a "cloud development environment", but on your local computer. It also allows you to easily setup the cloud development environment if you need one. While Docker works for setting up a new instance in a cloud provider, on a mac is a major pain so I don't really see it as a proper solution to the thing…
A ways off, but some colleagues in the hardware world are working out the requirements on paper. Maybe right as I type this, not really tracking their calendar.
There will be some wiggle room for general programming, patches, hands on customization by the user.
Software is a decades long bubble to help us discover optimal machine state models we can etch into chips.
So long as we can avoid social collapse or species extinction between now than then anyway :)