Nobody is paying $10 per CD anymore.
They're not paying $10, they're paying more.
So, about $3 less.
[1] https://www.usinflationcalculator.com/
(Who knows if that site is reliable though, the point is inflation.)
Stable Diffusion is math and cannot be stopped now the toothpaste is out. You can attempt to regulate, assign draconian requirements by force of law, but ultimately these are as unenforceable as regulating that pi=3.
Ironically, what could help is NFT type tech. Signed with a private artist key, your copy is "original". Even if knockoff generative copies are produced, the digitally signed produced-bys are still authentic.
That solves a completely different problem, though. I don't think anyone is saying that the problem is one of false attribution, where people are claiming generated images are the work of a particular person. What's being discussed is artists having less work because people generate art computationally rather than commission artists to do it.
We can evolve the market (in my view, into luxury goods with NFT type tech) or we can wait for artists to truly starve. I'm a proponent for solving the problem that can be solved to help folks move forward.
While it's possible that these AI tools will leave some (certainly not all) artists without work, what I think is really going to happen is that artists will harness them to do new things that were simply impossible before, or to make their work easier. Technology rarely destroys jobs; it more frequently changes their nature. Just like how at some points animators needed to know how to use 3D tools when in previous decades they didn't, in the near future graphical artists will need to know how to use AI. It's possible that where there were previously two artists working there will then be only one, but such is life. Demand for art is finite.
Your comparison to computer animation is apt. Rewatching animated classics recently, I can see what we've lost now that every film is plastic.
So, yes, what you say may definitely happen, but it's a trend some graphical industries have been on for decades. It's why there are so many fewer professional animators anymore. I wouldn't be surprised if some techniques of traditional animation have been lost by now.
In two years people will be generating novel music of any style with any vocals and vocalists they want. That'll be even more of a fit to consumers' wants. They'll never run out of music that will appeal to them.
I'm currently working in this space and it's wild the things that are possible.
Napster, P2P sharing of music, was not.
Piracy is held at bay only by the ease & affordability of legally obtaining media and difficulty accessing the technical means to accomplish it.
... and well-packaged piracy solutions and modern broadband bandwidth likely sink the maximum price (the only remaining term) below the cost of production.
It took me 20 minutes to go from nothing to an entire season saved locally and playing on a Roku. That's finding the software, installing, configuring, finding torrents, downloading, and then playing. And that's not having pirated in a decade or so.