AI is destroying the economics which allowed for a sizable middle class of artists. The issue is that many are paid for their art mostly for its aesthetic rather than artistic value. This isn’t the most creatively fulfilling, but it previously allowed many artists to make a living while refining their skills, often enabling them to pursue their real creative ambitions on the side.
I understand what you mean but speakers and recording equipment destroyed the economics of paying people to play music a long time ago. It's another way of looking at the problem. Smartphone cameras and easy-to-use professional equipment were thought to destroy the photography profession, yet photographers still exist, although we have to admit not as many as in the past. If I had a company with a budget, I wouldn't…
I guess my point is that there is a decent sized middle class of creative professionals right now, and I expect that the number of them will go down significantly due to AI. Seems like art will become more and more restricted to hobbyists and the lucky few who achieve mainstream success.
This is kind of what happened with photography. But I think the scale is much bigger, affecting all creative industries.