It may have already been solved, in the way that cars were "already solved" by the model-t or airplanes were "already solved" by the Wright brothers. That doesn't mean there isn't room for improvement in this space (for some definition of improvement).
I just see a lot of people in this thread (and other related threads) seemingly suggesting that since these videos aren't already better than Pixar or some other arbitrary level of quality they've decided that the technology "isn't ready". I'm suggesting that is a short-sighted viewpoint. Kids (and that actually includes pre-teens and teens) are not going to care. If people generate funny or captivating stuff using this technology then they will definitely overlook the uncanny valley. And the volume at which this content will be created, re-mixed and re-shared will soon outpace any other kind of content source.
I find it a bit amusing since I bet a bunch of nay-sayers probably grew up watching equivalents of Rooster Teeth Halo Red vs. Blue, which was garbage quality for its time. I predict that we'll see at least one massive new studio rise using these "not ready" technologies in the next couple of years.
edit: (As another data point, consider the huge success of Roblox with kids. It certainly isn't due to the visual fidelity of the game. Consider the Roblox equivalent of YouTube that is going to exist pretty soon.)