Most of that art is being created irrespective of copyright, though. Much of it uses exceptions to copyright and some is straight up in violation (most "fan art"/fanfiction). It's either not monetised or monetised through things like Patreon.
I wouldn't say we have more "traditional" art that an author spends time creating with the vision of selling copies for years to come, than we did when copyright terms were shorter.
I doubt that's true.
Is there a lot of fan art, yes, there's also massive amounts of original works as well. There is no lack of either.