I use AI to discuss and possibly generate ideas and tests, but I make sure I understand everything and type it in except for trivial stuff. The main value of an engineer is understanding things. AI can help me understand things better and faster. If I just setup plans for AI and vibe, human capital is neglected and declines. I don't think there's much of a future if you don't know what you're doing, but there is always a future for people with deep understanding of problems and systems.
I think you are right, deep understanding of systems and domains will not become obsolete. I forsee some types of developers moving into a more holistic systems design and implementation role if coding itself becomes quite routinely automated.