Yes, it can make stuff that fits in the rest of the codebase

But I am saying it's not going to ever make the code significantly better

In my experience, code naturally gets worse over time as you add features, and make the codebase bigger. You have to apply some effort and ingenuity to keep it manageable.

So if everyone is using LLMs to barf out status quo code, eventually you will end up with something not very readable. It might look OK locally, but the readability you care about is a global concern.