I know full well about how crappy the off-shore stuff can be. A startup I worked for went under partially due to a garbage client written by our offshore coding group.
However, I’ve also worked places where India did 80-90% of the coding and a senior coder just cleaned it up and packaged it. This is a workable model and can produce just as good a product for less cost than using an all domestic staff.
I don’t remember exactly what I said (and am too lazy to look), but I will concur that there will always be a demand locally for top-talent. If you are a junior coder, fresh out of school, etc, its much harder these days to get an entry level gig. Again, its all perspective!
I telecommute when I want, make close enough to six figures (equiv. with bennies IMHO) and have a recession-proof gig, so I can’t really complain anyways.