Besides the already stated reasons, bad quality products and low effort projects.
I view AI art like the "plastic" of art.
Something that will be used to inflate the market, fucking over consumers that will have to comb that market to find whatever it's actually desired and devs that will struggle to stand out due to the creation of a new standard norm.
Mentioned new norm, will also influence future devs to make future projects of equal quality products.
Regardless this being my opinion and the fact that i don't need scapegoats, i check out and follow what interests me.
On another point i do recognize the need of AI art since it will facilitate the production of art to important areas where just isn't enough talented artists, like facial composites to help victims tell their stories.
Though this market as nothing to do with that and will just grow into an industrialize concept, this isn't just porn games industry that is affected it's the world of art.
And the day that full AI created games becomes a thing isn't that far if we consider the fact that reskinning games is already a thing and was used to exploit the existing game market.