My fear is the alternative reality that these tools could provide. Given the power and output of the tooling, I could see a future where the "normal" of a society is strategically changed.
For example, many younger generations aren't getting a license at 16. This is for a variety of reasons: you connect with friends online, malls cost money, less walkable spaces, less third places.
If I'm a company that makes money based off of subscription services to my tools, wouldn't it be in my best interest to influence each coming generation?
Making friends and interacting with people is hard, but with our tooling you can find or create the exact friend you want and need.
We can remember now that life is beautiful - but what's to stop from making people think that the life made by AI is most beautiful?
And yeah, I've heard this argument before with video games, escapism, etc. I'm talking more about how easy it is to escape now, and how easy it'd be to spread the idea that escapism is better than what is around you.