If the things that Stable Diffusion produces
isn't art, then new art will be made in the same way it was made before copyright existed (patronage).
If it is art, then it will be made both by patronage and by people saying: "Hey StableChatSiri, make me some art."
(People will still do the later even if it doesn't count as art).
Hm. Thinking of patrons, does anyone know how many artists and sculptors there were in 1710 England?