A similar argument was used in favor of perpetuating slavery prior to the civil war.
> People just have to accept that means the industry will shrink dramatically. So many things will just never get made.
I've accepted that. Now let's pay people fairly for their time and skill.
> That also means far fewer people will get to become animators. They’ll have to find some other job as competition for the jobs that remain will be sky high.
The online independent animator community is thriving. If people create something that has appeal, they are able to at least partially subsist from subscriptions and donations. I contribute to several animators' Patreon accounts (though Patreon takes far too much out of it). If there isn't enough appeal, well... I'm sorry. Either everyone agrees to a fair wage based on these market conditions, independent efforts raise money through crowdsourcing, or... people find other ways to sustain themselves. That's just a healthy economy in action.