Yes I think it is.
When you base your company on employees, the number of which may grow or shrink based on necessity, that are augmented by freelancers then that freelance work is great. Long term contract Work is fine too. But if the majority of workers are freelancers it will lead to social instability IMHO. I’m not sure I’m ready to go all doom and gloom like other posters, but how are you going to be able to buy house if you’re constantly changing work location month-to-month?
There is ZERO loyalty between company and worker, which I think was the basis of employment in the past. The company made a commitment to you, and return you made a commitment to them and gave sufficient notice if you’re going to leave for a better opportunity arose. I don’t see that kind of civility continuing if everyone’s a freelancer.