I don't like it. Looks as inspiring as when someone accompanies each room description with the result of a quick image search.
That's why I don't believe artists will be replaced, the average Joe can't tell a good from a bad painting, or a good from a bad picture, let alone generate it.
continuity is a solved problem and so is quality and specifics
the law (an common sense) implies that as long as you're not reproducing art, you can do this. and latent space doesn't save or reproduce that content at all. It mimics, combines remixes or reinvents it. The same what a human brain is doing after learning how to draw.
humanity wouldn't be where it is now when it's forbidden to learn from inventions.