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... I think your point misses half the truth - if solo developers can create what we now consider to be AAA-quality games, the bar will raise.The historical comparisons you're drawing aren't really comparable to having AI at every stage of the pipeline. When pervasive and done correctly, AI is very much another animal entirely.
For your VST example, a more apt comparison might be AI that composes music to the level of say, Hans Zimmer or John Williams. Without getting into the technical aspects, I believe doing so is merely an evolution of existing tech that we have today. It's hard, but it's achievable—especially when you have have imagery from scored films to train against.
So, the day that technology exists, an artist's involvement there might be as little as changing the AI's RNG seed until the AI cooks up something they like. If the output is as good as Zimmer or Williams, then what will distinguish artists who actually are that talented?
I believe the answer is virtually nothing, at least in a technical sense. However, there's a lot of people today who like their food cooked by a real person instead of made by automation, even if the taste is just as good. The human touch will always remain relevant, but I think that both avenues will eventually hit what you refer to as an upper limit of goodness.