Earlier quoted context omitted.
The porn pivot makes perfect sense. Porn is already quite fake and unconvincing and none of that matters.
It might not matter as far as profitability is concerned, ethically the second order effects will be very problematic. I am no puritan but the widespread availability of porn has already affected peoples sexual expectations greatly. AI generated porn is going to remove even more guardrails for behavior previously considered deviant, people will view and bring those expectations back to real life.
I would argue that AI generated porn might be more ethical than traditional porn because the risk of the models being abused or trafficked is virtually zero.