The leap from "generating a frame" to "generating a video" is not as big as the leap from where we are now to a 'perfect' image synthesis engine(which would be required to get rid of artifacts).

The much more likely scenario IMO is that people get used to the artifacts and notice them less.

There is something with the AI needing to have a ‘sense’ for the world the scene exists in so longer videos can be created that are coherent. Currently we’ve only seen long videos that have no consistency and jump around a lot like an acid trip.

Yep, we're in a real hype cycle.

A good path forward is to fuse these image-element compositing tools with some of the 3d scene inference ones. So you start out with 'giant fish riding in a golf cart, using its tail to steer', then give that as ground truth to a modeling tool that figures out a fish and a wheeled vehicle well enough to reference some canonical examples with detailed shape and structure, the idea of weight etc. Then you build a new model with those and do some physics simulation (while maintaining a localized constraint of unreality that allows the fish to somehow stay in the seat of the golf cart).