That seems pretty sensible. There have been lawsuits from artists before. Do you want to risk a game selling 10m copies and then it turns out that all the art was just copied and pasted by the "AI" and Valve is now on the hook. Also from a store perspective, any game where shortcuts like this are used tend to be shit games. They don't want spam games to be pumped. There's already enough indie trash platformers that n…
I find this hard to agree with. A game engine is a "shortcut" too, I can imagine people saying at some point anything developed with Unity would "tend to be shit games".
Associating quality with visual fidelity anyway is wrong, look at Terraria, I'm pretty sure anyone semi competent with AI generation could produce better assets, but it wouldn't help them produce a better game.
People will use gen AI art in good games, and people will use gen AI art in terrible games.