I don’t think this proposed a false dichotomy at all. AI can be capable of just enough to still be a problem. If AI can rip off your game an infinite number of times before yours even gets out there, then your game looks like the rip off of those games and those games may have already soured an interested audience by being buggy or having weird assets etc.

I don’t think people are claiming AI is incapable of anything. Obviously, it will generally generate an output. The question tends to be around the quality of the output and the issues with the generation itself (dataset and energy concerns).