I'd argue that _content_ is a fairly gross word that we've all come to use because we're in the industry -- "I need some _content_ around my ads so that we get some impressions". There are plenty of other words that are less marketing associated and more clearly connotative with creatively produced material - article, report, essay, story, paper, proposal, manifesto, gallery, video, photographs, exhibit, website, blog post - even material. _Content_ is efficiently produced filler. As such, yes, in the extreme less _content_ gets made, and in the absence of _content_ there is organically more of the latter category.
You can still make money on the internet without ads. Ads have in recent history been an easier, higher margin route. If the entire online ad industry fumbles, will we be substantially worse off? I don't think so: the number and size of websites would for sure shrink, but those left would have a much higher signal to noise.