I've been thinking about this a lot lately. I feel very averse to consuming AI media, but it's not super obvious to me why. In some sense, I agree with what you're saying, but in reality no pixel art of a city I've never been to would elicit that feeling in me. Maybe I would feel differently if it were art of the city I live in and had some pixels dedicated to specific things I think are cool about the city, but for this website in particular it could be the best pixel art of SF ever made and I don't think it would be all that meaningful to me.

The main conclusion I've come to is that it's less that I dislike AI art inherently, and rather that I value the human decisions in media that I personally care about, and AI media threatens both its creation and how much other people value such things.

other than to feel connection to another human

With AI, instead you feel a connection to the sum of all humanity.