What you are describing is a work loop where the artist is being pushed to the outside, and in the medium/long term this will make artist's working lives much more precarious. And just like with NFT scams, most artists saw the impact to their material interests much more clearly than the tech bro set imagined they would. It is a lot more likely that producers will simply cut artists out of the loop and produce mountains of bland but acceptable crap at near 0 cost, instead of keeping an artist on retainer to re-record/edit songs.