AI image generation is not a build-your-own-weaponized-virus kit.
It’s a useful tool that can be used to produce creative expression. What people produce is up to them, and the fact that they might misuse their capacity for free speech isn’t an argument for curtailing it.
This is doubly true with regard to technologies that seem not only powerful, not only adaptable to new domains, but also rapidly improving on both of those dimensions. I don’t know what is the right level or type of limitation, but there is nothing confusing or weird at all about wanting to be careful with such a technology.
If technology keeps advancing (it will), new developments will approach “looks kind of alarming” status faster and faster. This is because they will also approach “could destroy everything we know and love” status faster and faster.
Lets take a current potential problem. That is a low powered application capable of facial recognition. You can now strap that on to any number of dumb weapons and you've created a smart weapon.
In itself it's not a problem, until it starts happening a lot. If you think like a house cat, you tend to think that society owes you its existence and you're the king of the hill. But say weapons proliferation occurs all those ideas of "I have rights" go right out the window, and this loss of rights will be supported by the masses that don't want to get droned in the head out on a date. The tyranny you want to avoid will be caused by the pursuit of absolute freedom.
As technology becomes more complex the line will blur even further. AI as a build your own 'terrible thing' will happen. Physics demands it, everything is just information at the end of the day.
Now it's up to you to avoid the worst possible outcomes between now and then.
Even actors like the Unibomber had a huge impact on things like bomb detection in mail and airplanes. Now imagine the modern Unibomber, instead of attacking randoms went after senators. The moment the class protected by wealth and power comes under attack from AI technologies expect a raft of laws limiting and restricting them to be enacted.
That's exactly why your rental histories at places like Blockbuster are, by law, confidential; A politician had their rental history leaked. Once a deepfake of a politician gets enough movement, said politician is going to begin rallying support against AI.