If your business model can't support paying people for their labor, you shouldn't be in business.
I wonder if you view the clothing you wear the same... A T-shirt woven, spun, and sewn entirely by hand would cost more then $4000... At US minimum wages...
A criminally compelling web site featuring professional crime writers and crime fighters.
www.sleuthsayers.org
People have been historically replaced by machines, for good reason, and every time it happens, people that it's happening to or are conservative in their views rebel against that.
Quite a few folks argue that art shouldn't be made by machines... I would argue that what they consider 'art' is nothing more then illustrations or textbooks for RPGs... And before someone starts arguing, some recently argued another argument that they used the definition of a word from the dictionary...
the expression or application of human creative skill and imagination, typically in a visual form such as painting or sculpture, producing works to be appreciated primarily for their beauty or emotional power.
On the other hand we have things like the group KLF burning a million pounds as performance art, that certainly had emotional power! (look it up)
Many things have become profitable due to advances in technology, most of the 3rd party publishers here wouldn't be able to run their business without serious advances in DTP (essentially serious pre-press automation), online stores and crowdfunding.
I'm old enough to remember factory workers getting fired when companies started to automate heavily, massive protests, many folks calling it evil and immoral, these days it's just accepted and we all buy cheaper goods as a result. The whole generative AI/LLM thing isn't any different.
The big difference being is after all the development and hype is done, how many people will actually use it in daily life, how many people will actually buy products made with it for entertainment? On one hand 'Big Brother' was insanely popular (imho garbage television) on the other hand, not everyone has everything painted in a Cobra art style (on/in their homes, etc). Things come and go, but I think restricting things don't really help, they generally make things much, much worse. (Do I really need to give examples?) I would say, let it run loose and let the market decide.
I'm not buying certain AI made products, not because it's AI made, but because it's badly done. Other products I do buy, and not because they were non-AI made, but because they were well done and I wanted/needed them. I've had quite a bit of D20 products from the 2000-2010 era that are not worth the paper they're printed on... No AI involved there at all, quite a bit of human made junk to fill a content starved environment, that changed when the streets were filled with D20 crap...