Earlier quoted context omitted.
Yeah but... it's good enough? There were movies with horrible VFX that still sold perfectly well at the time.
An important contrast is that early VFX offered strong control with weak fidelity, and these prompt-based AI systems offer high fidelity with weak control. Intent matters if you want to make something more than a tech demo or throwaway B-roll and you can't communicate much intent in a 30 word prompt, assuming the model even follows the prompt accurately.
You are spot on. I've been involved in creating technologies used by film and video creators for decades, so I have some understanding of what would be useful to them. The best video AIs I've seen only seem capable of replacing some stock video clip creation because, so far, I haven't seen any ability to maintain robust consistency from shot to shot and scene to scene. There's also no granular control other than the text prompt. At first glance, these demos are very impressive but when you try to map the capability shown to a real production workflow for a movie, TV show or commercial, they're not even close because they aren't even trying to solve the problem.
To be clear, I think it's probably possible to create a video AI that would be truly useful in a real production workflow, it's just that I haven't seen anything working in that direction yet.