If done well, it's good, I don't know why so many people oppose it.
I think it is because AI mimics, but not quite replaces, real craftsmanship.
It takes talent, but also time and effort to learn how to draw. And the same applies (in a different way) to 3d rendering. And of course writing as well.
AI is a matter of entering the correct promt (which, admittedly, is kind of a craft as well) and then waiting for the computer.
Perhaps you can compare it to the situation where you are looking for something to decorate your wall with. You can choose between a reproduction of a Matisse, or a real work by some unknown artist in a similar style. The Matisse is probably objectively better, but I would probably prefer the unknown work because it is "real".
Personally, I am mainly interested in these games because of the story. If AI enables some guy who has an excellent story idea, but no graphics skills nor a good command of the English language, to still make a game, then I am in favor of it. But that game will (as a matter of fact) compete with other games which do have "hand made" art.
In the end I guess I just see it as a kind of lazy and inferior way to produce graphics. I have the same opinion about Honey Select, Koikatsu and similar art styles. It does the job but it is lazy. In some cases, the story or gameplay make up for that short coming.