Do we though? That seems bleak.
I guess if AIs become excellent at everything, and the gains are shared, and the human race is liberated into a post-scarcity future of gay space communism, then it's fine. But that's not where it's looked like we're heading so far, though - at least in creative fields. I'd include - perhaps not quite yet, but it's close - development in that category. How many on this board started out writing mid-level CRUD apps for a mid-level living? If that path is closed to future devs, how does anyone level up?
I think one of the major reasons this is the case is because people think it's just not possible; that the way we've done things is the only possible way we can continue to do things. I hope that changes, because I do believe AI will continue to improve and displace jobs.
That may be your position as well - indeed, I think your point about "people think[ing] it's not possible" is directly relevant - but I wanted to make that more explicit than I did in my original comment.
It'd be like the ancient Romans speculating that cars will make us less fit and therefore cities will be less impressive because we can't lift as much. That isn't at all how it played out, we just build cities with machines too and need a lot less workers in construction.
There are a lot of ways if it did reach intellectual excellence that we could argue that it would make Humanity more mediocre, I'm not sure I buy such arguments but there are lots of them and I can't say they're all categorically wrong.
Isn’t this exactly how it played out?
We move orders of magnitude more cargo and material than them because fitness isn't the limiting factor on how much work gets done. They didn't understand that having humans doing all that labour is a mistake and the correct approach is to use machines.
[0] Given the floods I saw recently, I'm not even sure this is even true.
If someone wants to click generate on a podcast button or image generator it seems unlikely to me that was a person who would have been sufficiently motivated to make an excellent podcast or image. On the flip side, consider if the person who wants to click the podcast or image button wants to go on to do script writing, game development, Structural Engineering, anything else but they need a podcast or image. Having such a button frees up their time.
Of course this is all just rhetorical and occasionally someone is pressed into a field where they excel and become a field leader. I would argue that is far less common than someone succeeding and I think they want to do, but I can't present evidence that's very strong for this.
I've seen people manage to wrangle tools like Midjourney to get results that surpass extra medium. And most human artists barely manage to reach medium quality too.
The real danger of AI is that, as a society, we need a lot of people who will never be anything but mediocre still going for it, so we can end up with a few who do manage to reach excellence. If AI causes people to just give up even trying and just hit generate on a podcast or image generator, than that is going to be a big problem in the long run. Or not, and we just end up being stuck in world that is even more mediocre than it is now.