> Like, why are we wasting resources to fix something that human beings actually enjoy doing themselves?There's entertainment (99% of the stuff) and there's high art. For creators, entertainment is largely driven by money. As a result, especially since 70-80's and artists like Frazetta and Vallejo, most of the entertainment converged into simplified, easily repeatable styles that are easier (=cheaper) to produce, at the cost of quality and thought put into it. However, for other people the interest in entertainment is driven by novelty; same stuff gets boring very fast. This is a fundamental conflict of interests.
With the new tools, it becomes possible to automate the mechanical work like rendering; make a sketch and it turns it into a fully rendered picture in your own visual language that you constructed beforehand. This opens a whole new range of styles that were impractical to use before, due to the amount of work involved. For example, you can make animation in practically any style, not being limited to the striking "3D CGI" look or the simplified cartoonish look, or needing a huge ass team of VFX specialists - the tool does most of the rendering for you without putting specific limits on your style. Long form indie animation becomes possible.
>Am I the only one who finds the current crop of AI startups a little misguided in their priorities?
They are misguided, but probably not in a sense you imply. First, there's plenty of successful ML-based tools in the visual industries. ML-driven keying is pure magic, it's completely accepted in video editing now, it saves huge amount of work and enables things that weren't possible before. Same for denoising, and many other things.
Image generation tools are a bit a solution in the search for a problem, in particular because text to image is a gimmick and is insufficient for anything, and those startups don't seem to realize that. The novelty of prompt-based generation will wear off quickly.
What is needed is style transfer: construct you own visual language, teach it to the model and let the machine use it on a massive scale, leaving you to higher level concepts. This is a product that can be used in production.
Take a look at NVIDIA Canvas, which was a good early demonstration of the principle:
https://www.youtube.com/watch?v=mlZYRwJ2oJg
NVIDIA Canvas was a flop because the model was so basic, it couldn't make anything useful, and most importantly you couldn't teach it new stuff. The current generation of diffusers (Stable Diffusion in particular) is better but isn't quite there yet. You can train the model on your visual style and use it to automate most of the routine stuff, but it still makes mistakes that don't pass the quality test. The current generation isn't optimized for style transfer, the models are too small to be coherent, lack temporal stability for animation etc. Still, open models are very good at honing out the concept and identifying what is really needed.