It is a tricky juncture. People will stop moving forward as you say.
And artists who have developed distinctive styles simply become (unpaid) contributors as less talented people glom their styles and run with it. I saw one person wrote in the prompt: "Sponge Bob as painted by Kandinsky" and what came out was a fall down funny version of what Vassily Kandinsky might have done with Sponge Bob. Tough to compete with AI.
The fact that AI is now moving into animation is also scary. What a lot of animation has is that it is not portraying actual motion but it is caricaturing actual motion. Nobody bounces like Mickey Mouse when they walk...but given the power of AI, you will soon be able to say, "give me a Tex Avery walk" and the AI will have studied the spacing of Tex Avery timings and come up with a passable version.
Hmmm...