The problem is quite the opposite, that AI will be able to generate games so many game with so many play styles that it will totally dilute the value of all games.

Compare it to music gen algo's that can now produce music that is 100% indiscernible from generic crappy music. Which is insane given that 5 years ago it could maybe create the sound of something that maybe someone would describe as "sort of guitar-like". At this rate of progress it's probably not going to be long before AI is making better music than humans. And it's infinitely available too.