I don't really see a problem.
Prior to this it would have been the millions of throw-away "hello world" intro projects, or "todo app" websites. Hell - think of how many people wrote "facebook clones" back in the day.
The author is likely still gaining some skills & experience - although they're more likely project management & ops style skills than technical coding skills (ex - what does interaction with this look like, what's the desired cli surface, how do I configure/deploy it, etc).
Intellectual property is pretty much always going to be a case where 99.999% of everything gets thrown away. Because the cost of duplication is zero, so the model trends very hard towards a "winner take all" popularity contest. A very small number of projects will see large success, everything else will likely be gone in a couple years.
---
If anything, I quite like this new space. I no longer have to worry about trying to make software "big enough" for other people to use. Previously, it would take a large enough investment that simply scratching my own itch was prohibitively expensive - so I had to be picky about what I would pick up and work on.
Now I can bang out all sorts of things designed just for me.
I needed a way to limit screen time for kids, and existing apps are both expensive and junk. Cool - local llms wrote me a new home app for my android tvs in an hour. It does exactly what I want, and nothing else.
I wanted to point my Home assistant audio satellites at unsloth studio instead of ollama. Cool - local ai in unsloth picked apart the ollama implementation and updated it to work with unsloth.
Wanted a new ph monitor for my hydroponics setup, with an auto-doser (some super cheap peristalitic pumps), awesome, an old arduino plus an llm and it runs just fine.
etc...
I love it. It's simple to get relatively effective results on a scale of 1, for a scale of 1. I don't have to worry about trying to get community help or onboard people, or pitch it as a product, etc... It's mine, it'll last as long as I want. It is trash? Sure - to you (seriously, it'd be hard to run, is explicitly designed for my stuff, has no docs, etc... I'm under no illusions that it's not garbage in the broader context). But it's treasure to me.