What makes it bad currently is the slow output.
The example shows "Sign-in screen" with 4 (possibly more) instructions. This could equivalently have been entered one at a time into 'chat'. If the response for each was graphic and instantaneous, chat would be no worse than non-chat.
What makes non-chat better is that the user puts more thought into what they write. I do agree for producing code Claude with up-front instructions beats ChatGPT handily.
If OTOH AI's actually got as good or better than humans, chat would be fine. It would be like a discussion in Slack or PR review comments.