They’d just be blackballed by the courts.
It’s already trivial for law firms
to generate mountains of bullshit, and seeing the output of some firms first hand, I’d even call it the primary business model for a few of them.
But if they don’t stick within certain bounds of sanity, they get sanctioned by the court or can even be disbarred. Judges really don’t like references to non-existent precedence, or making arguments based on laws that don’t actually exist.
And opposing council, unlike random ignorant member of the public, has both the incentive and resources to identify bullshit like that.
Decreasing the cost to generate bullshit while removing any human checks on it may sound interesting, and might even work for a short period of time, but is going to meet the brick wall of reality pretty quickly. It’s already started to do so in many cases.