As a taxpayer I do not fund CS and math research because it "transforms minds." I fund it because it produces commodities. If you want to transform your mind, whether through math or meditation retreats, you are free to do so, but don't expect research funding to do it.
At least historically, we haven’t really been able to tell what will be transformative in terms of real world applications ahead of time.
If an AI can make 100 commercially unviable discoveries (for now) on its way to each immediately commercially viable discovery, that's great - bank them in the discovery library for later.
Still doesn't mean we need mathematicians doing everything with pencils instead.
This is mostly false. There are certainly some famous cases where math pursued for theoretical reasons later resulted in major practical applications but historically a great deal of math was developed either in response or alongside practical problems with anticipated real world applications, with war, industry and commerce being the major drivers.
We are destroying the planet and ourselves. There are a few things which we do that are just good in of themselves, which can inspire and proof that there is good. Friendly competition, exploration, art and understanding the world around us.
What world do we want to live in? And what are the kind of personalities that would be required for such a world? A thousand Picards or a thousand Musks?