One answer perhaps would be that anyone who thinks AI art is good probably lacks the taste to appreciate anything beyond the generic, and the discernment to tell that it is submerged in the depths of uncanny valley.
Very true - arguably truer today than it was earlier, if DALL-E's declining quality is any indication.
DALL-E 2 had some degree of artistic talent (in the loosest sense), but because DALL-E was made and run by creatively sterile techbros without a shred of art skill, that talent was drowned very fucking quickly.
Just an off-the-cuff prediction: I fully anticipate AI bros are gonna put their full focus on local models post-bubble, for two main reasons:
Power efficiency - whilst local models are hardly power-sippers, they don't require the planet-killing money-burning server farms that the likes of ChatGPT require (and which have helped define AI's public image, now that I think about it). As such, they won't need VC billions to keep them going - just some dipshit with cash to spare and a GPU to abuse (and there's plenty of those out in the wild).
Freedom/Control - Compared to ChatGPT, DALL-E, et al, which are pretty locked down in an attempt to keep users from embarrassing their parent corps or inviting public scrutiny, any local model will answer whatever dumbshit question you ask for make whatever godawful slop you want, no questions asked, no prompt injection/jailbreaking needed. For the kind of weird TESCREAL nerd which AI attracts, the benefits are somewhat obvious.