The quality of the upper echelon of art may be raised, but there's still a discovery problem there. Having to sift through stuff to find the gems is already an issue imo. The OP makes a decent (pessimistic) point
All content is not created equal: we are social animals and what people around us do interests us much more, even if it is of lower quality. So, if anyone can generate professional-looking creative projects with relative little effort, we'll gravitate towards people creating content on niche subjects that interest us; thus creating small communities with high engagement. Even if they have low watch count, they'll matter to those participating in them. Fanfic communities already work that way.
There always be a place for conventional mainstream media outlets creating run-of-the-mill high-production-value works, with themes averaged to appeal to the masses; it's just that they'll have a lot more competition from communities of the first type.
Had they had to draw the episodes the old-fashioned way, they would have had to put a lot more energy into the animation even to get the same result.
People using Dall-E or Midjourney naively will be like those unremarkable classicism painters in the late XIX century doing realistic yet conventional paintings which nowadays you can create as studio photographs.
Meanwhile, brilliant artists will train new AI models throwing in data collections that have never been seen before as their training input, to generate completely new styles - just like the -ism movements threw all academic conventions away in pursue of new art styles, bringing us modern and postmodern art.
When I had Netflix I remember being frustrated that Netflix would recommend me shows "based on" content I had watched for a few minutes, decided I didn't like, and backed out of. Why would you recommend me content if you have a strong signal I dislike it?
I too hope it gets better, but it's hard to replace a panel of experts that have sifted through their subject when it comes to quality recommendations in some fields.
This is the thread: https://news.ycombinator.com/item?id=32482523
and it's well worth reading the article.
TL:DR; AI is good at something, but don't expect it to be aligned with what the user wants.