1) The output, while impressive on the surface, is bland and recycled. It will drag down the general level in the same manner that CGI has destroyed movies.
2) People don't want to consume AI generated content in the same manner that they generally don't watch Stockfish vs. Stockfish.
3) It is not phobia, it is disgust at humans being dehumanized.
The phobia seems to be on the side of AI corporations, who quickly step in any discussion that questions their business model.