AI cannot write for shit, it’s not even a fraction of a millimeter of the way there compared to the production of Thomas Mann or Dostoevski or Cervantes.
The fact that people are using it to flood the world with slop is a hyperscaled continuation of the overabundance and discovery problems we already had, but that doesn’t mean that writing is dead or dying.
The technology simply doesn’t have the capabilities right now, and even if it develops them, what will be put to the test is whether literature is about the artifact or the connection between the author and other humans.