I agree, but I do think it makes the book industry more difficult. A flood of books makes it makes it harder for new authors to make it. Just like a new youtuber has a very difficult time. Eventually publishers will turn to AI just to deal with the volume on submissions, and then it will become just like YouTube, where an algorithm decides who wins and loses.
At the same time, readers will have to sift through an insane amount of books to find what they like. It is already kind of like this, even before AI. This causes people to rely more on reviews and word of mouth, which becomes a volume game and is also influenced by the algorithms.
I don't think it is the end times for literature, and for those who put the work in, they can find their places. But it is a whole new set of challenges.