The demographic are people (usually children) who aren’t discerning about the output but would love to have something high quality to look at.
Paint has always been about how some low quality squiggles may represent some latent art ability. It’s not true, but that’s the feeling it gave children and this continues that.
Of course there’s the whole other argument of whether it’s good or not….
This might be the best argument against putting AI in MS Paint that I've yet seen. I know this is a slippery-slope argument, so take it with the applicable grain of salt, but imagine a world where kids grow up making this kind of generative art, and never progress beyond "low quality squiggles", because they get frustrated when they turn the AI off and it looks bad.
Microsoft seriously has no taste.
And somewhere on the Paint team someone smiled, and thought "hold my beer"...
(Just wait until we get Co-pilot baked into Notepad!)