I don’t think “real art” will disappear. People will always want to create (although monetising that will now be exceedingly more difficult).
It feels like we are ripping the humanity out of life on a greater and greater scale with tech. Instead of replacing crappy jobs and freeing up peoples time to enjoy their life, we’re actually automating enjoyable pursuits.
NB: when I’m referring to art I mean of all types as that’s where we are heading.
This has always been the case. Most entertainment regardless of form (music, art, tv, games...) is mediocre or below mediocre, with the occasional good or even rarer exceptional that we all buzz about.
AI image gen is only allowing a wider range of people to express their creativity. Just like every other tools that came before it lowered the bar of entry for new people to get in on the medium (computer graphics for example allowed those who had no talent for pen and paper to flourish).
Yes, there will be a lot of bad content, but that's nothing out of the ordinary.