Commercial AI has all of those issues you mentioned, and more, and less. Midjourney is just a bunch of LoRAs layered on top and scripting to generate the images. But since they do that, midjourney images have a specific "feel" that it can't seem to get rid of. It's nothing really out of the reach for someone sufficiently motivated to reproduce.
DALL-E is laughable now, and it's only been a year. Certainly has been surpassed by open source, and outside competitors. I'm not sure what your motivation is to discount open source. People are already running LLM inference on their phones.