It's putting human biases on full display at a grand scale.

Not human biases. Biases in the labeled data set. Those could sometimes correlate with human biases, but they could also not correlate.

But these LLMs ingest so much of it and simplify the data all down into simple sentences and images that it becomes very clear how common the unspoken biases we have are.

Not LLMs. The image generation models are diffusion models. The LLM only hooks into them to send over the prompt and return the generated image.