I agree that regulation will be useless because the politicians and most people wouldn't even be capable of detecting bad content as bad. I also agree with your second point: Humans will prefer robots. It turns out human beings are actually quite terrible to deal with. Constant scheming, laziness, lying, low intelligence.. the list goes on and on. The second you don't have to deal with a human being, you'll be glad. In any shop, factory or anywhere.
But I don't agree that it's game over. This needs to be a turning point for humanity: Finally start using your time to actually do something other than exist to exist. Actually try to conquer the stars, actually do something. Don't just sit on a single rock in space and pretend that's good enough.