From a consumption standpoint, you're right, it doesn't matter how it gets recorded. Essentially, this stage is Chris Rock yelling "NOBODY GIVES A F#@%" at Jack White for using 1970s analog technology to record his tracks.
The problem's on the production end. It used to be that to record something, at least two people had to like it, the artist, and the engineer. With AI, nobody has to to listen to the tracks being uploaded, they're simply created and posted, and the market/audience gets to figure it out. If something hits, great. If not, we're out some processor time, and it's basically the same business model as spam.
At that point, what's the role of the creator? Are they acting as a filter, using their influences to shape a personal sound? Are they curating / promoting previous recordings for future generations? Does the creator even bother to have an artistic vision for their music, instead relying on profit and loss statements to determine their next set of tracks?
"Well, #1543 was a hit, now make eighty more versions, between 1-20% faster, using Green Day's instrumentation, and include an audience so it seems live."
Lather, rinse, repeat. Is it a long term career? No. As the artist doesn't have a singular voice, audiences become fans of songs, not necessarily artists, and nothing lasting gets built like that.