Note, not all blue collar jobs were being threatened. Only the repetitive ones. Same as they have for the previous centuries.
Car manufacturing has been automated very much and there was still a need for welders and other skilled workers in different fields. If phased in slowly enough, automation of repetitive work does not have such bad repercussions and has happened all throughout history.
But we've had all of history to regulate quality control in many of these fields. All of this regulation worked to slow down adoption of automation. And this is a good thing. Without regulation roads would be full of alpha quality self driving cars (Tesla manages to ignore this). And even when the tech is ready, switching too quickly is bad.
Creative fields are far less regulated and require far longer training and education. The transition to alpha quality 80% good enough AI has the potential to be far more abrupt and to never actually eliminate higher skilled work but to instead destroy the pipeline towards that higher level of skill.
On the other hand, an utility (truck, taxi, etc.) driver, for example, after a certain number of hours of driving will no longer get any better at driving. Repetitive tasks have an upper limit of skill. Contrast for example a lawyer, since we recently had that AI startup, there is no upper boundary for skill because at a high enough level the comparison is fuzzy. And lower stakes cases serve as training for higher stakes cases. Also contrast how road regulation slowed start-ups like Waymo and Cruise (but not Tesla) vs the reason DoNotPay is facing setbacks: not because there is regulation specifying a minimum level of quality of lawyer work but due to receiving threats from State Bar prosecutors.
Think of other examples of jobs we have automated away: textile making, blueprint drawing, etc. After a number of years working the loom or drawing blueprints a worker would no longer get any better at it. Overall humanity is better off having automated those tasks and the transition has been gradual.