So fans have fan fiction because they love certain worlds and characters and want more of it, or to riff on the base to take stories in new directions. We have things like TV tropes so it is no small stretch to, say, generate sitcom-type stories from Harry Potter or GoT that can continue forever. But where does all of this lead?
Music has sinilar issues, but I think of this like the compression/loudness issue in music production. Everything gets amplified so the range of everything is compressed. And then it gets boring and people slowly jump ship for something else.
I think there will be a wave of AI slop that improves and might actually be exciting on some vector, but we will get bored eventually. Humans crave newness, even if that new thing is worse in exactly the ways that defined good previously, like punk in response to complex rock albums.
AI can combine ideas in interesting ways, but it is by design a predictor of what is most likely. This is directly odds with the concept of newness (and arguably, human-ness) which is baked in to what we consider interesting and relevant.
I don't get your point. Do people not get bored and move on to something else one way or the other? What exactly is different?