I mean, we've done the same with farming. Is it 100% automated? No, not at all, but we've removed something like 99% of the human labor involved that would have occurred around 200 years ago.
Art without humanity isn't art. Farming can exist without humanity because we need the output to sustain ourselves. But take the humanity out of art, and no one is interested in it.
I think AI is terrible for a lot of midrange commercial graphics. I don't think it's bad for "art."
(*) And why has there never been a market for broadcasting music performances in cinemas?
Having live piano performance at a bar or other venue was extraordinarily common. There's still piano bars, but...
Graphic designers, corporate advertising, media productions; video game artwork, the artistic channels where many creatives earn a square meal even if it isn't the most human and soulful type of art.