I was in gaming long before this modern obsession with full color illustrations and extreme graphic design. I enjoy good art. But I'm not buying a coffee table art book, so as far as I am concerned, if they can't afford an artist, then don't hire one. In my opinion, if someone can get an image generator to produce an image for their thing, the image isn't actually needed because image generators don't have the ability to know what is important or not important.
If you think the market prefers AI illustration to no illustration, then do that. I'm just not going to buy it. I'm not going to get mad at your for doing that, though if I buy something and then find out its AI because it wasn't identified, then I'll be pissed off.
If someone's doing a bake sale, I don't expect to see them selling factory made cookies. If I wanted those, I could just buy them.
It might well be that in a few years, there's nothing for me to buy in this hobby because it's all done by AI. So it goes. I buy things because I like supporting human creativity and buying chatbot or image generator "content" is the opposite of that.
Your bake sale analogy opens up an interesting new angle here.
For me it depends on what the bake sale is in aid of. If it is for charity I don't care where they sourced their cakes as long as they make a profit. Home made cakes get kudos but just donating some cakes you bought in a shop because you don't have time is still an act of generosity. Providing a picture to break up the text or showing you a thing rather than describe it in excruciating detail is an act of generosity to you by the author. Whether they commission the art, do it themselves, use clip art or rendered clip art by AI doesn't change that.
A local may stock some "brand" goods because their customers occasionally come in to buy some artisan cakes, but do their weekly shop at the super market where they always buy a particular brand of bread. If the local baker can get the revenue from that sale as well then it is a few more pence towards their business rates and may mean the difference between staying in business or going out of business. In this case of course the branded goods are clearly not made by the baker so this would be your AI produced badging. Those small publishers are also the ones that over time might support "real" artists. If they go out of business before then they will never do so.
AI art is a spectrum. If you are just typing in a prompt and taking whatever random output then you are actually being less selective than choosing some PD clip art. I doubt that this is actually what is happening so that is a bit of a straw man argument. What is most likely happening, in the majority of cases, is that a carefully worded prompt is being used and the output being selectively tuned (by a human with artistic or technical sensibilities) until they get an image that meets their requirements. The missing step to acceptability to some people is taking that output to a flesh and blood artist so they can finish it.
In order for that artist to have added any value (and to establish copyright for the work) they need to change the it in some way, but that is now a change to your vision*. I have never commissioned an artist as I know what I want and I don't know any of my friends who are artists that will do that, they always end up doing what they want to do. They may produce an image that I like and value, but never what I envisaged. If I was doing that for a creative work of my own then I have lost creative control over a key aspect. The only way I can get my own vison on the page is telling a machine without ego to do exactly what I want.
When I buy art by a human, I buy off the shelf. I just look at stuff until I find something I like. I can't tell you why I like it it is an emotional response (and as an ND I have few enough of those that I cannot afford to ignore those I do). If I want something to illustrate MY creative work, I can articulate what I want as I don't need an emotional connection to it (and I don't anticipate my reader having an emotional connection to the picture). So I think there is a difference between representational art (technical drawing for example a map or deck plan) vs. evocative art (such as a flashy cover to grab the buyers attention vs. expressive art (which is expressing the artist and making a connection through the work - and to my mind is for galleries not published works).
*If an artist produces an image to a precise brief and it meets that brief, is their work derivative or original? I doubt any artist would allow themselves to be so constrained so I suspect there is no precedent.