Work like this helps us work towards new approaches for the more difficult issues involved with replacing physical labor. The diffusion techniques that have gained popularity recently will surely enable new ways for machines to learn things that simply weren't possible before. Art is getting a lot of attention first because many people (including the developers working on making this possible) want to be able to create their own artwork and don't have the talent to put their mental images down on paper (or tablet). You worry that this prevents us from following more creative and interesting pursuits, but I feel that this enables us to follow those pursuits without the massive time investment needed to practice a skill. The future you describe is very bleak indeed, but I highly doubt those things won't be automated as well.