So? To the extend that people are still involved, they are typically paid - unless it is slave labor, that is.

This is not an automation vs manual labor debate. Creators will use any technology that helps them create something worthwhile. It may even involve algorithms in various ways. Generative art was a thing way before the AI bro invasion.

The question is about provenance, attribution and remuneration of whatever human work and creativity is involved in producing unique pieces of work. Work that is used as input for the algorithmic production of infinite variations and replicas.

The AI crowd simply wants to devalue that human input (while pressumably charging for API's or whatever comes on the other side of the meat grinder).

Which I suppose might happen in an increasingly dystopic world, but they seem to also believe that people will keep embarking on literary studies, movie or music making studies etc. as some sort of non-remunerative hobby, just to keep producing useful inputs for the AI models.

Its not going to happen. The golden goose will be dead before you can spell "AI".