It's far too extreme in my view.
No one was actually harmed by someone creating art.
If someone writes a fictional story where a classmate is a character, or they draw a cartoon, or they paint an oil painting or they use a computer to make digital art, that all has to fall under freedom of expression or we're not really a free country anymore.
Now, if they were trying to fraudulently pass the creations off as real- if they made an image that looked like it was taken by a security camera and said "This is real, I caught person X doing <whatever> and here's the security camera proof" then sure, that's fraud. Or plausibly, the images could have been used in a way which was harassment- if someone glued the picture to a student's locker to try to embarrass or annoy them or whatever, sure then that act is harassment.
But all this panic and pearl-clutching over AI generated images is silly. In 5 years there will be AI-nudes of everyone and we'll all collectively shrug it off and go about our days and laugh at the luddite prudes of yesteryear.