I don't think that applies to the arts

It does, since you have only a finite amount of time to look at art during the day. Is it equally easy to find good art (for whatever definition of "good" you choose to have) if 5 out of 100 images you see in a day are generated by AI, than if 95 out of 100 are?

Back to my original point; slop makes the good stuff stand out

Ok, but, like, imagine you are a fantastic artist, there's 100 paintings, most bland as fuck, and yours is the only one that looks good. Great, people who view 100 paintings will see yours and marvel at your skill.

Now, we have AI. Yours is still the only good one, but there are now 100,000 paintings.

How likely is it that your painting is still recognised as good, by someone who looks at 100 out of 100,000 of those paintings at random?

It doesn't matter that your painting is good, the discovery mechanism is shot to bits.

How are you discovering art? What discovery mechanisms are you utilizing?

What mechanism exists that deals with this? Even if I say something like my local art gallery that just shifts the burden of wading through 100k paintings to them away from me, an they still won't be able to sift through them all.