I agree with you in instances where it's not generating a real person. But there are cases where people use tools like this to generate realistic-looking but fake images of actual, specific real-life children. This is of course abusive to that child. And it's still bad when it's done to adults too, it's sort of a form of defamation.

I really do hope legislation around this issue is narrowly tailored to actual abuse similar to what I described above, but given the "protect the children" nonsense they constantly moan about just about every technology including end to end encryption I'm not very optimistic.

Another thing I wonder about, is if AI could get so realistic that it becomes impossible to prove beyond a reasonable doubt that anyone with actual CSAM (where the image/victim isn't known so they can't prove it that way) is guilty, since any image could plausibly be fake. This of course is an issue far beyond just child abuse. It would probably discredit video footage for robberies and that sort of thing too. We really are venturing into the unknown and government isn't exactly know for adapting to technology...

But I think you're mostly correct, because the moral outrage on social media seems to be about the entire concept of fake sexual depictions of minors existing at all, rather than only about abusive ones

Did you just compare furries to pedophiles? One of those is harmless, the other is not.