You can never defeat piracy. So it doesn't matter it's ethical or not.
Companies will use it, no matter the cost.
The real problem with these AI generated "art" is ... it's boring and inconsistent as hell.
Don't expect any improvement. It's by design ... meaningless, blurry but "fancy".
Look at the image 1, it's a boring door but it's functional.
Image 2, think about how to open it. Then you will realize the added lighting and texture improve nothing.
Image 3, the central symbol is corrupted, which is not consistent with the style of other parts. And where's the green light comes from ? How to open it?
Image 4, same problem, can't image how to open it.
The last one, what's the purpose of the grasses? The door frame is not cyberpunk at all.
My conclusion is AI will replace most cheap and unskilled artists (and developers).
Big companies will use this trash, and they don't care the complains of some consumers, because most people are brain-dead. (Including the CEOs, they can't find what's wrong with these generated contents)
But don't ask any question, don't look at the details, or you'll find this is just the illusion of "art".