This is true but the quality frontier is not a single bar. For mainstream content the bar is high. For super-niche content, I wouldn’t be surprised if NotebookLM already competes with the existing pods.
This will be the dynamic of generated art as it improves; the ease of use will benefit creators at the fringe.
I bet we see a successful Harry Potter fanfic fully generated before we see a AAA Avengers movie or similar. (Also, extrapolating, RIP copyright.)