I worked at a (very) well known media company in Hollywood during the Netflix disruption. This really doesn't sound all that different from a Hollywood exec mocking internet media in the early 2000s. People are trying to understand it and leverage it. Quality is bad. Then one day you wake up and it's taken over, because it kept improving. Setting aside the debate on AI use in the creative process, even if models never get better there are years of optimizations to be done on the tools/business side.
As a gamer, I'm actually excited for it. I want more diversity in games beyond what the current indie scene provides. If we can give smaller teams the horsepower to make what was considered AAA 5-10 years ago I will be quite happy as a consumer.