Interesting take. And yeah, I agree that present AI is far from being of acceptable quality with the long form content, especially for fiction writing.
The big problem with AI writing is that the subtext is 100% unintentional, which leaves it very inconsistent and constantly conflicting with itself. The average person with no real understanding of subtext or writing experience still manages to have a consistent subtext, their own experience and perspective fills that in, they have that intuitive understanding which AI completely lacks. I suspect this will become a major role of the agent, to help the writer who is just starting understand and develop their innate use of subtext.
Most books on amazon have zero subtext. Tell me PercyJackson has subtext. Pick a romance novel or a lit_rpg and show me the subtext. That's just it.. the stories don't have to be good. They have to be good-enough. Sadly they'll get better really fast.
Subtext is not theme, everything people write has subtext. When someone posts on the internet we can often tell if the person is angry or happy or depressed even if they are not being overt about it, we get that through their subtext. A writer like Stephen King is not a great writer by objective literary standards but he is an effective writer because he understands subtext, he knows that fear is not just one thing, there are gradations of fear, there is the fear of tomorrow, the fear of loss, the fear of death, the fear of being late for work and there is the childhood fear of the monster under the bed. King knows he can exploit the common everyday fears everyone has to build that into an irrational fear of something that may even be absurd out of the context he provides. AI lack this and is a very long ways from it.
Romance is overflowing with subtext. No idea about lit_rpg, never read anything of that sort but I am sure it is there. Even your short post is ripe with subtext.
I don't think it will wane off with time, but will grow more. The new apps based on generative AI are empowering an average user without the relevant skills to create in a way that wasn't possible earlier. From creating gaming assets to powerful animations, it's impressive. So naturally people are excited about this.
Similar is the case on Product Hunt as well. But it includes all sorts of products - from simple wrappers around GPT-3 etc. to truly innovative apps. It's kind of becoming overwhelming. I write about AI products and learning resources in my free weekly newsletter https://aibrews.com