I think another important point that AI is revealing is how diverse the population's preferences are. Legacy entertainment is nowhere as precisely tailored, because it tries to appeal to a wide audience.
Personally, all the Harry Potter AI shorts recently have been rather amusing, although they also vary significantly in detail and wit.
> Legacy entertainment is nowhere as precisely tailored
In some instances, it's even engineered to be broadly appealing. See Disney and Marvel.
On the other end of the spectrum, we have niche-specific creators who appeal to specific genre fans and can package their own tone and taste. That's actually really cool.
It's kind of like what happened to music. Electronic music, the DAW, and home recording opened the avenue for indie artists and all of the various genres.