If the proposed system works, I expect those entrenched artists will sue young human artists whose work shows signs of learning from previous art. The vast majority of music, books, and movies have clear influences.
The proposed system exists, and humans have had to work in it for some time now. People get routinely sued for copyright infringement if their work is too close to an existing work. The (successful) suit against George Harrison for "My Sweet Lord" is a good example of infringement via influence with no clear malicious intent.
Copyright expires, and new artists will create new (copyrightable) art in the future. Unless your assertion is that generative AI is so good no one will make art without it ever again?