I'm not an expert on AI, but your complaints sound like minor versions of the major problems that these image generation AI's had a couple of years ago. It used to be that they could only create a mishmash of textures reminiscent of the subject and style, and struggled creating distinct objects at all.

Now, your examples simply show some slight artifacts and lack of details on specific things. You're presenting remaining shortcomings on these metrics as "fundamental to how it works not a flaw that can be iterated away", when in fact they have mostly been iterated away over the past few years.