As for where this is going, I have no more idea than anyone else. However its interesting to note that self driving cars was thought to be pretty doable, we'll have this working in just a few years. But it turns out its a lot harder than originally thought. It would not surprise me if we find that creating art (as something that inspires that touches people etc) is in a similar class.
This is an interesting point, and of course part of the issue here is that "art" is a very broad spectrum of
things, ranging from works meant to inspire to more mundane things like, I dunno, the cover image for an opinion piece on a news site.
That latter half of the spectrum is important, because it's a somewhat reliable source of income. It's a safety net for someone who wants to get into (visual) arts - maybe they'll make it big, or maybe they'll live a comfortable enough life creating something that might not make them the next Michaelangelo, but which provides clear value to society. In my opinion, it's that safety net that's currently at risk.
To try and illustrate that point, here are a couple of AI-generated oil paintings of Trump, currently on fire*:
Now, is this revolutionary art that's going to inspire generations? Of course not. But could it be used as the cover of the next WaPo article about how Trump is a criminal? Yeah, probably. So, if an idiot like me can spit that out of a generator without having to pay for a stock photo or a comissioned art piece, what's stopping large companies from never commissioning artwork again?
* - I should note that while DALL-E 2 is supposed to be restricted from generating images relating to real people, those restrictions are
terrible.