We still use CPUs, despite ASICs being much more efficient, because CPUs are general, easy to use, and have titanic quantities of infrastructure already built.
There are more farm animals than ever before, and still growing. All the lab meat solutions flop hard.
Also, because we trust AI more than fellow humans (Say Russians/Iranians etc), why would AI necessarily trust other AI more than humans? Any new AI is unpredictable, while humans are very well understood in behavior and basically fixed in genetics.
Annihilation is a fairy tale used by people to comfort themselves. The actual reality: Slavery and domination, is much less romantic. It won't even necessarily be worse than existing tyrants in say North Korea or anarchy in Haiti, it'll just be very very different and life goes on.