How does that follow…?
Most organizations do derive net benefit from laying off the below average and hiring the above average for a given compensation range, as long as the turnover is not too high.
And this delta increases when the above average can augment themselves more effectively, so it seems we should expect an even more intense sorting.
The more awkward truth is that most of what developers have been paid to do in the 21st century was, from the larger perspective, wasted. We mostly spent a lot of developer time in harvesting attention, not in actually making anything truly useful.