What will actually happen is people will think "meh good enough", shitty AI art will become the norm, and we'll be boiling frogs and not realize how shitty things have become.
The objectively superior product is the one that people pay for. They are exchanging labor/capital for the item/content.
I could make the best movie ever conceived, the movie to end all movies. If nobody watches it, it has 0 value.
The market selects for that, and only that. Other qualities of the product are secondary, making any statements to the effect of "the best product [outside the context of simply making the most money] will win" misguided at best.
No, that assumes perfect discovery of options. The product people see first is often chosen.
> I could make the best movie ever conceived, the movie to end all movies. If nobody watches it, it has 0 value.
Things only have intrinsic value if validated by others? That's just not true.