I do agree with the broad premise that we have a glut of content. AI is only going to make it worse.

The problem with your argument is that most people love the mostly forgettable noise and variation on the same theme. That's why there are 137 Marvel movies which were all huge hits, 42 different Star Wars productions going on right now, and Gordon Ramsey has 13 simultaneous shows. (Warning: made up numbers).

Most people don't want to think when they watch movies. They don't want high concept indie flicks. That's why Netflix and Amazon are huge and Mubi and Criterion Channel aren't.