I think nearly everything you said is likely wrong.
AI doesn’t “do everything for you” any more than word processors, music sequencers, or CAD does. AI allows people to operate at higher levels of abstraction, is all. Yes, fewer people will type repetitive copy in to word processors. But that’s fine.
You are mistaking activity for productivity. Few people go into writing because they enjoy typing. AI offers leverage, which is the most amazing thing for anyone interested in producing work.
Ask any professional writer: revisions are a chore. Authors often say a novel is 10% writing, 90% rewriting, and they don’t enjoy the rewriting part.
So, IMO, contrary to your doomer take, I think we will see more people producing better work because they can focus on the parts they love and not do the grind that was only ever a necessary evil.
(The exception being those who love the grind and not the product)