This doesn't just generate the code though. It generates the "art" and everything else as well. Ideas are beyond cheap. It's the personal creativity that makes games good or bad.
And saying the code doesn't matter is just ignorant. In plenty of great games the art doesn't matter. In plenty of others the code doesn't matter. Or the dialogue. But the reverse is just as true. In a game with tight, fluid player controls, the code to make that happen takes just as much creativity and skill and human touch as any other form of art. A driving sim made by someone deeply uninterested in the code they write will never feel good to play.
It is just so disingenuous to say that people who focus more on the code side of game development aren't creators. If I can make a demo with a black rectangle jumping around on some red rectangles and hand it to someone and have them say it feels like they're jumping around as a cat, with no art or animations, I'd say that took creativity and a human touch that ai is nowhere near being able to emulate.
So if AI can't emulate it, what's the issue?
I do think AI can emulate it - one of the earliest headlines I remember is an AI piece winning a digital art competition. The piece was great and the influence of the (human) artist was obvious.
If something is beautiful, I can't be assed to care what kind of paint was used to create it. If you trust human beings to continue to appreciate art as we have done since the beginning, there's not going to be any intractable issues.