I think it's a hard one.
I don't use AI for my musical or graphical stuff, but I'll use AI when I'm coding large or new projects... I don't get it to code for me, but I'll either explain a system that I'm planning to code to it, to get some feedback and help me think it through, or help me with research and working examples.
Though I'm hoping to move into selling assets and trying to get some commissions; I can see why developers using AI generated assets that they generated themselves might be extremely helpful, whether it's due to a sense of control or a lack of budget. I'd rather a developer make and release a game than not do so, because they can't afford an artist or find one that shares the same vision.
But selling asset packs that are AI generated? I obviously feel a personal discomfort with that. I think if it became common that the expectation would be that if an asset pack was made using AI generation; it was clearly stated, as well as the tooling used; I think I'd be a bit more comfortable with that.
I guess the real fear might actually be the "race to the bottom" that artists might feel. Let us assume the person selling AI generated assets isn't overpricing their work (I literally wouldn't know, I don't think I follow any), and the pricing is based on time required to generate, minimal touch up (maybe just even converting to an optimal format), time required to set up store-page and a small extra like $1; If the buyer perceives something I make to be of even a similar value; I can't compete with that pricing at all.
I think the reality of it all is that once the razzmatazz of AI fades, it will eventually just be seen as common tooling, which will help it be refined. Currently I see it more as a way of producing highly detailed, but somewhat bland placeholders with a lot of iffy copyright issues. The removal of it from itch would just create a secondary market place, where people could find cheaper assets, but possibly never stumble upon the charm of a hand crafted asset pack.
Sorry for the long rambling comment... I think I'm somewhat putting off some homework, but I've sort of been thinking about the subject recently, so I thought I'd try to contribute.