No, everything that can be automated SHOULD be automated, but the automation should benefit everyone instead of just the 0.1% (actually this percentile keeps getting smaller and smaller, so the percentage of people outside of the "permanent underclass" is probably even less than that now).
The problem about AI (at its current level, barring AI2027 type scenarios) is not about AI, but about the way we've organized society as a whole.
I've brought this up before, if the USSR existed today how would Soviet mathematicians react to AI? Would they be dismayed or overjoyed? You never see mathematicians acknowledge this point, but it's the crux of the issue. In our society employment justifies existence, in a society where existence is inherently justified AI would mean freedom to people instead of causing existential dread.