PowerBuilder does generate code. However, the statement, although true, seems vague to me.
If you are referring to the code that PowerBuilder generates when a developer uses the PB IDE to create PB Objects (Windows, DW, etc), I'd rather say that the developer creates those PB Objects and PB translate that into PowerScript code.
If you are referring to the code in the PBD/EXE files, I'd say that PB generates files (for deploymen) not code.
HTH,
Manuel Marte