As the OP's problems suggest, you can only scale "up" with ChatGPT to a certain point before it starts to introduce new productivity problems and even problems related to burnout and being able to properly digest and understand everything being thrown at you. With respect to teams, it also introduces risk by ensuring that larger workloads that may previously have been shared by multiple people are concentrated to a single person.

Sure - it's just like moving to a better IDE, or a higher level programming language, or a 10x faster CPU (which has happened a couple times now in my career), or a better compiler. All of those things just increased the expectations and ambitions for what a team could accomplish/manage though.