Automation, or any other current safety improvement does not increase / decrease situation awareness; it changes the circumstances of the situation - its different. We learn the skills required in one situation but fail to appreciate, or learn the changes required for alternative situations. Awareness with auto flight is not the same as with manual flight, and vice versa.
The skills we lack are knowing how and when to change the way in which to perceive and respond to different situations.
We should not think in terms of good / bad: only awareness as required for the situation, and that which will be required for managing the the next iteration of an uncertain future.
Situation awareness includes projection, thinking ahead.
Automation Dependency - when do you revise your understanding of this situation, decide to change the plan - use the steps. Time, effort, lazy, or fear, the risk of being incorrect, not getting to the top quicker and being seen to ‘fail’ by others.
Yet either route achieves the objective of getting to the top.
The issue arrises because there is a choice; so why do we, the industry argue for the need of choice - capability, safety or cost.
