Are they actually smart if they're bypassing the purpose of the challenges that are inherent to writing original work, that leads to them developing their mind?
1. Here is what the generator produces.
2. Here is why you will fail if you rely on it.
3. Assignment: Write a better essay using [these listed points] than the AI.
4. (extra credit) Write an AI that produces better output.
I put the burden on the educational system in terms of a challenge.
Misses the point. Are students to use the generator should it not have the flaws you teach them? Is the purpose to deliver non-flawed essays, or to have students rise to the challenge of producing them?
Rising to the position of being able to use a good generator is not the goal.
I just feel this is yet another example of schools not being adapted to the Information Age.