The limits (increasing) and benefits (decreasing) on AI are becoming more apparent each day. I think the difference in output of AI across writing, image creation and music tells us something interesting about those media. From a writing perspective it fails for all the reasons you describe and soon many of these tech companies are going to face some serious problems in their business model.
I was pleased to see the Medium email banning it in most of its forms. It is a complete waste of time for both readers and writers.