I can see your point but I'm not sure it's that straightforward. Let's say you simply took a hat with your kid's favorite characters from tv/movies/books/whatever on slips of paper, drew some, then did the same for plots, then made up a story to tell your kid.

At some level, sure, it's not the same as coming up with a story on your own - there's not going to be anything meaningful in why you selected those particular elements of the story - but that merely constrains those choices to free you up to be creative with other aspects of the story.

I think there's still room for someone who wants to be creative to use the tools to provide the same experience you're describing. It's not like one has to give the raw output to one's child. And I think such raw outputs will be generally bland, missing something relative to those with a human touch. However, giving bland and meaningless entertainment to children wouldn't really be something new, and I still see a fair concern in there. I suppose this is already part of what articles on "Kids' YouTube" are talking about.[0]

[0]https://www.avclub.com/take-a-trip-to-the-automated-hellscap...