I think it's liberating.
You have a whole generation of depressed teenagers comparing themselves with genetic lottery winners, filters, and photoshop edits.
If everything online can be fake, than nothing online is real, which means nobody is 'beautiful' unless I see them in real life.
Feels like coming back full circle.
The starkest example of this is in the '99 film Fight Club,in a scene where the characters mock a Calvin Klein bus ad featuring an impossibly chiseled model. The man doing the mocking is none other than Brad Pitt whose abs are even better than the model's. Something tells me the characters envisioned by the author didn't look anything like him.
AI flooding the space would be like little bits of skin visibly peeling off all the magazine models, exposing a robot underneath. If that's ubiquitous, it breaks the spell.
A break won't happen instantly, but the illusion no longer sustainable, outside the much smaller niche of people idolizing actual fantasy characters.