This comment is right on the money in making the distinction between illustration/stock images, and fine art, let alone installation or performance art. It's a distinction not made often enough in these conversations. These functions are performed by different people, for different reasons, and they're used in different ways.
Sadly, the market for the kind of art that the these models cannot disrupt is relatively small compared to the kind it can. There aren't a lot of people making a family-supporting living doing installation art. Most people I know with art degrees do illustration, photography, or are part of a video game or film asset production pipeline (or they draw tattoos, but that's a different matter). If I were them, I would be looking at the next generation of this technology as a potential threat to my livelihood. I don't want to be alarmist, but it is a possibility, and it'd be weird to dismiss it.
One other thing I'll tack on here is that I find it fascinating that the kinds of skills required to be "good" at using these image generation models — "prompt engineering" if you like — are largely different than the ones required to create art from scratch. You can be a great studio painter, but not be able to "talk to" Stable Diffusion at all. Likewise, you may have zero artistic ability in the traditional sense, but be a prodigy at getting the computer to spit out what you are imagining, or something even better than that. If AI generated art is determined to be a kind of art (as I believe it will be) the parameters of what we call artistic ability may change.