Are most side projects in competition? I wouldn't think so.

Even if they were I disagree that 10x more ideas being produced means 10x more products in competition. You could leverage AI to execute but still have terrible ideas, leadership, product stewardship etc.

I think some clever people with a real and valuable insight will finally be able to turn that insight into a product. I also think the other 9 products will be get rich quick attempts by people with nothing to offer.