banning generated vomit is now evil?

Generation is a means to an end. It's up to the user to decide what that end is: it can be absolute naff, or it could be a solo auteur's masterpiece. The problem isn't AI, it's Valve's complete abdication of quality control.

I'm not saying this specifically is Evil. But neither was Google "first" instance of whatever it did to start it's downward descent. At the time it was probably something silly and a thing we thought we could brush off due to the goodwill they had with us.

there's nothing downward about banning the vomit

Low effort responses like that are brain vomit. ChatGPT can do much better than you.

Nothing downward about Google making sure advertisers can advertise to an audience likely to buy the product instead of truly random ad distribution either.