I think it will be here to stay. When used responsibly it is a very powerful tool, but it really does produce a lot of low quality slop. It's one thing to use it as a reference for the programming language, engine, tool, etc that you don't really understand, but it's another thing to make a game with AI ideas, AI art, AI programming, AI music, etc.
I'm pretty split on it. I think good projects can be made with it, and I don't really like the idea of regulating the industry against AI, as we are already seeing a bit. But at the same time, I don't like the fact that even more slop can be made more quickly and easily.
I don't know, such a hard argument. I think responsible use is the key here. I participated in an AI generated game jam and it was honestly pretty fun. But if I was making a project for Steam, or commercially motivated purposes, I'd feel like I'm cheating my players if I used it for more than, i don't know, maybe backgrounds or loading screens or something like that.