I see younger people taking on more traditional hobbies while continuing to be very active with their "phone hobbies". A balance of both seems really healthy. It definitely doesn't have to be one or the other.
I was never a coder, but I can understand this frustration. For some, the efficiency is probably really exciting, but for those who really enjoyed solving the puzzles, something is lost. For me personally, AI and vibe-coding have opened up a whole new world (I built a mobile app), but I get why it's killing the passion for some.
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