I think it's possible that some generous person determines a sequence of prompts that generate, say novels, and then pipes these prompts into a program causing thousands or even millions of wholly varied novels to be generated in the public domain. I imagine this is what the OP meant.
I've been changing my mind a lot on AI these past few weeks.
I don't think the price is what stops most people from reading books. People already have access to countless works they don't have time to read, adding a bunch of soulless ones to this seems like it won't change much.
As a (once avid) reader, the worrying part will be discovery. Why I was eight I could pick any book off the library shelf and it was interesting and enlightening. Today, the noise so outdrowns the signal that I have to rely on recommendations. Tomorrow, when both the books and the recommendations will be generated by bots outpacing human authors by orders of magnitude, I expect that quality new material will be impossible to find.
Honestly, library books tend to be better than random stuff in Barnes and Noble because if it wasn't checked out, it probably would've already been scrubbed from the selection (libraries have limited space), so instead of just getting whatever books were published in the last 2 years, you get books that were published in the last 200 years, and only the more interesting ones. Additionally, the Dewey Decimal system, or its replacement (don't remember what it's called), sorts stuff by similar topic, so if you're already in a section that is interesting to you, any nearby random book also is likely interesting.
This is why I like still going to physical libraries. Also, lack of user-hostile interfaces.
(Closed) Knowledge communities* -- will resurrect and undoubtedly there will be communities with a spiritual basis. Possibly a new age of Modern Midevalism awaits.
What can change is that people can get more of exactly what they like. In which case many might well put up with imperfect continuations, and the AI will have material to mimic.
