You are absolutely correct. The reaction from artists is sheer terror disguised as a dialogue about whether a machine can learn to make art by looking at other peoples' works just as another human would learn.
I see it as a slow transition though; there's still plenty a human artist can offer over any current model even with a carefully curated prompt. But yes, eventually the whole industry will die down. Especially seeing as models can now generate sounds, 3d models, textures, natural placement of objects on a map, etc. Like everything we've invented a tool to help us do things faster and it will displace people. Tough to say whether it's right or wrong but it's what we've done all through history; move on from one technology to the next. I wonder if traditional artists complained/fretted when digital art/tablets were getting big, hmm.
