I guess I'm just confused about who specifically you're referring to. Is it the many current creators who happily post things on the internet for free? Or are you referring to just anyone who has copyrighted their work and posted it online?
If it's artists, I think you are underestimating the impact a "real" author has on a given work. We're all human, and art tends to be about capturing a shared experience. This means the viewer of the art can make assumptions about the author's humanity and (sometimes) connect with them emotionally in this regard. It's about communication _with people_ - not with an unfeeling language model that is very clearly trying to win a game of sorts.
So the artists incorporate these tools, some of them don't, new genres form, and new ideas are captured. All the artist has to do is assume they still have an audience (they will, because humans want to see art from other humans).
I think the biggest problem is that indeed, _other people_ will use these tools to trivialize the works of others and conceal the origin. But again, the artist can just ignore this world - as before. It's not like copyright law was actually ever protecting them anyways. Same argument applies to licensing on Github code; while you can get on a soapbox and complain about how your code is GPL licensed - that won't prevent hundreds of developers from copy and pasting it when they need a working solution.
The most pragmatic solution before, and now, was always "don't post things on the public internet for free if you don't want theft to occur". This is a lesson people keep having to learn since Napster.
In any case, if the end result is that artists do indeed start charging for their creations - then great! I don't really see that magically solving other issues (surplus of artists, shortage for the labor they would be good at), however.