The guy is genuinely worried for his future. I see nothing shameful or narcissistic about that, and I don't think it makes sense for you to wish him any harm.

While I understand both of your perspectives, please think about how frustrating it can be to have poured years into building a product genuinely solving a problem and building a relationship with clients only for a dozens AI copy cats to come in. Even if your product is clearly better, the SEO slop alone will raise your marketing cost, price cutting will affect you as not all clients are able to tell quality before purchase or will know of your project, etc. And in the end, everyone is worse of. We get less for the products we build. Customers in many cases get a worse solution. And the AI copy cats multiply until none of them can make a living from it.