My point is not that they fundamentally need it, but more that they are over-reacting to the current hype cycle. 5 years ago no one considered Photoshop's generative fill to be problematic, and I would have expected it to be on the long term roadmap of any similar piece of software. It was a widely appreciated feature that no one really felt was changing art.
Even if the whole current generative AI trend disappears entirely, that's still a feature customers wanted before, and there's no reason to think they wouldn't still want it.
And that's assuming nothing comes of the current trend. I would imagine the opposite, that at least one or two limited use-cases will be found for things similar to generative fill, that in years time will be regarded as normal, not as problematic.
Now if Procreate wants to position themselves as "low tech", that's a different thing, and they're free to do so, but looking at their product it doesn't seem that they're going for "low tech" in any other way.