You could commission smut of whatever type you want for quite a while. And many people do so. Even customised smut is not new. It's just going to get a bit cheaper and automated.

You couldn't talk to commissioned smut. Of course you could request changes etc. but the feedback loop was nowhere close to what you can get with AI. Interactivity is a very big deal.

Sounds like an improvement then. If people have more freedom to enjoy what they like how they like it, I see that as entirely a good thing.

At the degree of generalization you are working at, yes. More preference matching is a good thing.

This is spherical cows territory though, so its only good for setting out Birds Eye view of principles.

There are several large platforms for interactive 1:1 or 1:few smut in various media forms. “LLM enthusiasts” have been using smutai for a couple years now. Smut generation is probably on of the top three reasons for people to build local AI rigs.

There are absolutely people getting paid to roleplay smut in chat sessions and have been doing so at least since original Second Life and likely since the dawn of chat.

Alien 1: "How did the earthlings lose control of their own planet?"

Alien 2: "AI generated porn"