Let's say this or some future AI system writes better novels than any human author at a fraction of the cost. Novel writing is solved.
What will we have achieved?
I wish I could opt out of this world you want to create, where if you achieve your vision, I will be utterly useless and obsolete.
Novel writing is like the training ground for emotional intelligence in AIs. Fiction writing itself is not economically important, but the skills learnt from it is.
As a passionate hobby writer myself. I say you should actually go and try the writing tools, sudowrite/verb.ai are examples. Once you start using them, you start realizing how much they suck at writing stories, and your worries will go away. Unlike art AI, fiction writing AI has not really improved significantly. The core challenges are unsolved since the days of GPT-2.
There's also little research money coming in. Having a truthful, helpful, inoffensive AI is the polar opposite of what you want in a story AI, which should be deceitful, aggressive, and offensive.
It's impressive it can even do that, and it'll improve, but anyone looking to these tools to generate good fiction at this point will be disappointed.
Well, if it was "an AI" like Lt Cdr Data, then we would want it to be able to write novels, among other things, just because humans can, and we presumably want to create artificial humans, no?
Maybe not, I think it's a very bad idea to create artificial humans. But the systems we're talking about are not artificial humans, they're the kind of system that everyone on the net has started calling "an AI" in the last few months (I know because it bugs me no end when people do that, but now it's everywhere so I can suck it up, it won't change). Those are only "AIs" in the very specific sense that everyone calls them "AIs", and not because of any of their real capabilities.
And the point is that those "AIs" that we have right now are not capable of writing novels. They are capable though of producing lots and lots of spam spam Spam SPAM.
And they will. There's already so many novels, short stories, novellas, novelletes, flash fiction stories etc etc written by humans, that a human lifetime is not enough to read them all. What is the "AI" going to add to all that? Another human lifetime's worth of spam?
Maybe that's not such a big problem. If I already couldn't read all the books written by humans up 'till now, then I can spend the rest of my life reading only books written by humans, simply by checking the publication date and rejecting any book written after the creation of book-writing "AI" (which we don't have yet).
I'm trying to say, we can avoid reading spam, nowadays, it mostly just clutters our inboxes. We can avoid reading "AI" spam, and it doesn't matter if it will get bigger and bigger or not.
Maybe the future web will be divided into a wastebasket for "AI" spam, and the rest. That's a bit of a bummer, but the web is already divided into shit (99%) and not shit (1%). Yeah.
So I don't know. Maybe this will turn out to not be as bad as it seems.
Many authors are already "obsolete" in that they're not paid a living wage for the job of writing creative fiction. It's understandable to prefer being paid for it, and in an ideal world being obsolete would just mean you get to do it for fun and fulfillment and not worry about the money.
If you as a writer use a paid editor and cover designers, odds are it'll take you several years to break even today.
Unless you're "discovered" by a traditional publisher and they think they have the next Harry Potter on their hands, even being traditionally published means next to no sales for a large majority.
So it's already about fun and fulfillment for most authors. I went into writing (so far two) novels knowing the above, and did it anyway. That said, some do go into it thinking they'll make lots of money, or desperately looking for another income source.