I know some folks who are doing this in the food blogging space, see https://tastytango.blog/ It's hard to pin down exactly what I find so unsettling about the practice – it's almost like the uncanny valley, but for written content that apes human expression instead of imagery?
Might not be exactly this, but it makes me feel similar to why people hate advertising. Which I believe is, people don't like feeling lied-to, and everyone knows that marketers are trying to get in your head to manipulate you into manufacturing desire or stoking insecurity, all for the purposes of getting you to buy their products.
I think people like organic word-of-mouth, but on the flipside, hate when they find out that someone was a paid shill to posture as an average consumer, but are an industry plant to trick and deceive us all lol.
But to your point about why it feels icky and unsettling for publications & media companies to just straight-up use AI to write articles... seems kinda similar. Many of us are already skeptical that journalists & reporters are being censored and manipulated into writing with an agenda. But these types of AI-generated articles feels a few degrees more dehumanizing and Machiavellian. Like, the humanity aspect can all be aped so well, that we can just manipulate the masses and assuage their needs for a sense of connection without having any souls behind it whatsoever, because the masses are viewed as a bunch of manipulable "things" to simply extract things from (like attention).
I don't like it either, and for me it seems like it's those reasons. It feels so... gross and heartless.