Please do this analysis on other children's books, I think you will find something similar. These aren't masterpieces of storytelling...
Where the Wild Things Are - a fever dream about rebellion and unrealized sexuality, hero's journey into the latent world and back.
Green Eggs and Ham - picky eating works on its own, or can stand in for just about any other unpleasant experience. The repetition mirrors the real-life experience of getting used to something you don't like.
Can't remember the name, about fuzzy little monkey people living in a hut? - really cozy, about the warmth and safety of being a cuddled-up tiny person without worry.
There's no throughline in this one. The prickly porcupine stands in for a stressed mom. The fairy stands in for a child who messes up the kitchen. The solution is play all day and leave the kitchen dirty? Doesn't hold together.
I'd take out the filler "journey" bit, add in some conflict between the mom and kid, and make the ending more realistic (fairy uses magic to make icing for the cake?). That might bring it up to library-filler tier book.
To me, the art looks really impressive though. Again, no throughline - I'd expect a progression that goes from lonely porcupine -> in the wilderness -> sharing the stage -> back at home but happy
THIS. This is exactly the power of these models. The AI generated an entire story in some extremely quick amount of time and an experience Human can edit and curate the results. It generates first drafts trivially.
-> Caterpillar eats food -> Caterpillar eats more food -> Caterpillar eats even more food -> Caterpillar gets sick -> Caterpillar eats less food -> Butterfly.
The succession of events have a thread that join them together. I'm pretty sure ChatGPT could write it as well if you give it the above summary, but the hedgehog story doesn't have that and feel uncanny because of it.
Take a look at Penguin in Peril for example.
Cats are hungry -> they go to see a film -> they are still hungry so they decide to steal a penguin -> the penguin escapes -> the penguin swims through a fountain back to the zoo -> the cats get put in prison.
I dunno maybe it's still fairly coherent, but we've gone from "completely impossible" to "bad children's books" in like 2 years. How many more years do you think it will take to get to "good children's book"? I bet less than 10.