Yeah you could make it sustainable for sure. I think in a rational economy the tech would only find its way to places where people actually want it, and the data center requirements would be a fraction of what they are now, and people wouldn't be nearly as annoyed by it because it wouldn't be getting actively propagandized to the tune of hundreds of millions of dollars. Even major corporations would be more careful about it because there wouldn't be an infinite money tap subsidizing its use - the economic incentive would be for fast, specific local models rather than massive, slow, and expensive cloud ones.

That said art communities would be still mad about image generation, schools would still need to figure out how to prevent it from breaking essay writing forever, and the whole question of massive copyright violation that occurred to make the tech would still be unresolved.