Not a popular opinion, everyone wants the answer to be "never, it's terrible and useless", but I'm inclined to agree with you on almost every point. AI is a powerful tool with guidelines and testing to constrain it, and smart human review. My only real point of contention is writing.

I find writing is like coding, in that a good story needs structure, pacing, a lot of elements to work on a macro scale, although with virtually no ability to bake that into the "good approved code" that the AI can work off. Perceiving that structure and pacing requires more context than any AI can handle. Honestly I think writing is probably the #1 area AI should be kept out of. I'd be pretty concerned that AI output feels good enough, but really poisons any story you let it influence you on. And a bland story is a pretty cardinal sin for a good game. I also find AI writing and patterns are much more obvious than a lot of people think, I've certainly seen coworkers wield it with undue confidence enough times.