Several things I see here:
1- In general, people's standards are falling. You see it everywhere... IKEA furniture, crappy post production, rubbish food, dodgy DIY, poor quality replaceable clothing. 'Close enough is good enough' is a mantra I hear often and dislike immensely.
2- Prices of good camera equipment are falling. This allows Average Joe to shoot results that are good enough for Case 1 above.
3- Photography really isn't that *hard* if you're only satisfying point 1 above, as achieved by Photographers in point 2. Brain surgery, that's hard. Electronic engineering, that's hard. Nuclear reactor design, that's pretty tough. Photography however can be taken up with the purchase of a D90 and some big brass ones. There is no barrier for entry, which coupled with point 1, means the market has saturated very quickly. Creative vision, that's tough. Capturing something put in front of you? Not so much. Some people can go and get offended by this, or recourse with "Well let's see you do better!". Get over it. Some things are easier to do than others and are rewarded accordingly. We don't see complaints from brain surgeons about happy amateurs stealing their jobs. Couple that with the fact that photography is something many people start as a hobby and get a lot of practice on for the fun of it (Unlike reactor design...) and the rest is history.
4- Dave Bird mentioned Infinite Monkeys. 1, 2 and 3 help said monkeys.
5- From point 1 stems the fact that a lot more work is being stock sourced, due to 2 & 4 providing a massive amount of stock material and just enough lucky shots for art producers suffering from 1 to get by.
6- I suspect a great many complaining photographers were not really good enough to rise far enough above Pre-Digital 2 in the first place and the rapidly closing gap once kept wide by the cost of gear has eaten their market. Such is life.
I program. Anyone can learn to program and the barrier for entry is even cheaper than that for photography, requiring the oldest of PCs with an internet connection. How to avoid being outsourced? Reliability, creativity, ingenuity, locality and personality. If you're doing a mechanical job, you'll be replaced with a machine (Or an amateur with the suitable tools).