Game developers are creators too and just because you use AI tools to speed up the process does not mean that there is no creativity involved.
When you give AI generation a try, you'll realize that you have to do quite a lot of work and selecting to get decent results.
Also this bullying of creators needs to stop.
Most of game developers who publish free games here are solo devs who simply do not have the budget to hire multiple artists for months to create these images. So there is no "defunding" happening as the budget that would pay the hypothetical artists simply does not exist.
