> Alternately, 1/10 will be able to adapt to becoming cyborgs responsible for handling the same workload, while 9/10 get laid off

Somehow, vastly decreasing the cost per unit output for the work won’t increase the market clearing quantity?

Depends on the market demand for knowledge work resources. Knowledge work mostly optimizes how well actual resources are produced and delivered to the consumer.

Not necessarily, increasing offer can increase demand. Look at the cheap burger you're having.