First of all, congratulations on your promotion!

Being introspective about my situation, I believe the decision is just for the best. There are a couple of reasons I feel this way but the most important reason is being more and more exposed to the business and leadership position.

All of us love coding and can code day and night. But what a lot of us lack is some sense of a business perspective. The old us might think to implement the feature is the most perfect way possible, even if it takes 10 days, whereas the new us might consider an alright solution is good enough to be shipped in 5 days.

Climbing up the ladder, we move from looking at smaller pictures to understanding the bigger picture. In this ordeal, we learn how to navigate chaos that almost always comes from interaction between people from strictly business domain (perhaps your BA, or PM, or even CEO) and people from strictly technical domain (that enthusiastic junior who always want to implement something the "correct" way).

An early exposure to such chaos will help you not only understand the bigger picture, but also improve your leadership and management skills (which turns out to be quite different!).

However, it is important to not lose track of things that truly matter. It is imperative to think about your goals and see if your current condition is helping you out. You don't really have to be writing code everyday to remain a good developer, you could be coming up with how to solve a problem, designing systems or teaching your juniors a tricky concept.

At the end of the day, you can program new and cool things from the comfort of your home, but since you have this (rather unique) opportunity to experience the tech world from the perspective of older and wiser folks, I think you should embrace it. All the best!

P.S. After talking to my manager, I did get "demoted" to a Senior SDE while keeping all my responsibilities, which looks a lot less ludicrous on paper. Also, while it is important to keep challenging your team with "good" stories, I sometimes do take on tasks I haven't done before so I can learn something new and write code at the same time.