My problem with 2) is: it works. If you look at most movies; both the way they are made and the stories they tell is really subpar these days and this has grown worse in the last decade or so. It's not the fact that CGI is used, it's the really lazy and sloppy way that it's used. Same goes for the stories: there are so few films that have a real story to tell that I have mostly stopped watching movies at all.
I'm totally convinced the industry can sell AI generated media just fine, even with the attitude you described.
EDIT: in similar vein the settings of movies/series are equally minimised, particularly in fantasy. Take for example Game of Thrones, Winterfell. This setting could never have worked in reality and yet people loved it. Brett Deveraux pointed out how silly it was and still.https://acoup.blog/2019/07/12/collections-the-lonely-city-pa...
There's this YT channel - Like Stories of Old - I love who made an episode precisely on that topic: https://youtu.be/tvwPKBXEOKE?si=180Wkylrx-L5zOsI He calls it the haptic of a movie.
I'm totally convinced the industry can sell AI generated media just fine, even with the attitude you described.
EDIT: in similar vein the settings of movies/series are equally minimised, particularly in fantasy. Take for example Game of Thrones, Winterfell. This setting could never have worked in reality and yet people loved it. Brett Deveraux pointed out how silly it was and still.https://acoup.blog/2019/07/12/collections-the-lonely-city-pa...