If I may be the Devil's advocate, I'm not sure I fully agree with "The hard part always has been, and always will be, understanding the research context (what's been published before) and producing novel and interesting work (the underlying research)".
Plenty of researchers hate writing and will only do it at gunpoint. Or rather, delegate it all to their underlings.
I don't see an issue with generative writing in principle. The Devil is in the details, but I don't see this as much different from "hey grad student, write me this paper". And generative writing already exists as copy-paste, which makes up like 90% of any random paper given the incrementality of it all.
I was initially a little indignated by the "find me some plausible refs and stick them in the paper" section of the video but, then again, isn't this what most people already do? Just copy-paste the background refs from the colleague's last paper introduction and maybe add one from a talk they saw in the meantime, plus whatever the group & friends produced since then.
My experience is most likely skewed (as all are), but I haven't met a permanent researcher that wrote their own papers yet, and most grad students and postdocs hate writing. Literally the only times I saw someone motivated to write papers (in a masochistic way) were just before applying to a permanent position or while wrapping up their PhD.
Onto your point, though, I agree this is somewhat worrisome in that, by reaction, the barrier to entry might rise by way of discriminating based on credentials.