I strongly disagree in any case that we shouldn't be investing in AI. I think that there's likely a rising tides lifts all boats effect that occurs with improving AI in general -- it all feeds into each other. People who work on image generators are building expertise in AI and can potentially discover things which advance the field, or inspire others to work in the field. Humanity getting better at making AI generate images, or compete at video games, or predict protein folding, it all probably contributes to the rate of improvement in AI.
And it's not unreasonable to think that AI will one day solve problems like cancer or climate change, so we should very much care about the rate of AI improvement. As for the power concerns, ironically, thanks to the increased demand we are seeing companies like Microsoft and Oracle make large investments in nuclear power now. It could be the case that this kicks starts a boom in the nuclear industry which eventually brings costs / eases regulations enough to put us in a better place in the long run.
It's extremely complex, I don't think we can say at this point that investing in AI in the midst of a climate crisis is a mistake.