I have said repeatedly that when AI eliminates the need for human creativity and work, the only thing left as the natural domain of humans will be bloodshed. The fact that we're using AI killer robots to wipe each other out in droves doesn't bode well for that future does it...
I think you underestimate just how much we value human achievement. Why do we watch Olympic runners, when cars on your average city street easily exceed Usain Bolt's top speed on their morning drive to Starbucks? Why do we watch the Tour de France, when we can watch Uber Eats drivers on their 150cc scooters easily outpace top cyclists? I'm sure within a couple years a Boston Dynamics robot will be able to out-gymnast…
When chess engines started becoming really good, some people worried that competitive chess would die. Today, grandmasters stand no chance against a smartphone, and yet, chess popularity is at an all time high.