Outside of the ethical issues behind the core technology in imagenet and LAION in the first place, and the ethical issue of scraping all the training data, and the ethical issues of replacing skilled and talented artists with robots built from their work...

Actually the more you think about it... there's a lot of ethical issues with Gen-AI.

Let's pretend we don't care about ethics for the moment. A situation like this is one where many people were going to just steal the art anyway.

One of the other problems with AI art is, it's low quality. Do you care about the quality of the art in the purpose you're using it for? - often for ttrpg monster art, people don't care that much, so it's a purpose that AI art can fulfill.