That's a pretty good take, I think.
What I object to is this notion that everyone should make art, and that AI empowers them. As in (and yes, I've read this, I'm not making this up) "people without writing skills can now write novels". That seems wrong to me. People without writing skills (or drawing, or movie making) should not be making those things.
I would distinguish: they could make them for their own entertainment, but should not market them. But come to think about it, how much non-AI slop is out there that has become popular from entities with no or mediocre talent in it: generic Hollywood blockbusters, supplements, yellow papers, influencers ... all slop that became popular not due to its quality but secondary resources in form of marketing, placement and persistence of the propellants.
Yes, I thought of this too: the industry was full of slop way before AI. We spoke of "Netflix's algorithm", but even before Netflix blockbuster movies were done with a cookie cutter. Transformers (to pick one example) existed way before this brand of AI. Movies like it are perfect candidates to be prompted and built by an AI, since they were almost there anyway.
I can't help but think this "AI empowerment" will make it even easier for studios to produce more garbage at an unprecedented pace. And they won't have to even let actors age gracefully and die; now we can have Tom Cruise (or whomever, pick your poison) forever.