Much of children's best-selling fiction is extremely derivative. The way the market works, it's nearly impossible to get things published that aren't extremely derivative.
To the extent that, I think this might actually be a good place to start - with auto-generated derivative garbage - and then fix the "problems" with the plot through editing.
My first thoughts on this story were pretty negative. The plot is almost incoherent. There's not much conflict. But it does have a little bit of a mystery, and it does get resolved.
Although much of it came from out-of-nowhere (The Theme Park), Alice's Adventures in Wonderland and many other extremely popular children's books are literary nonsense.
The illustration definitely does not fit together well, and is not what you'd expect to get from a book you paid $20 for.
But, overall, it's really not bad.
I could see a huge market for parents wanting custom books like this generated for their kids about all their zany interests. If your kids loves baking & cute animals & mystery - they'd probably love this story.
Maybe it costs $1 or $2 - it's definitely not a big business - it's probably not going to "disrupt" the market (because it's so entrenched I don't even think disruption is possible).
If this is too much literary nonsense, I'd love to see what it could do if you asked for the same story "In the style of AA Milne" or Robert Lewis Stevenson or James Mathew Barrie or Beatrix Potter.
I can definitely see a near future where almost every parent does this for their kid once or twice a year.