There is also the legal thing to solve too, if the generated code or art can be licensed at all (assuming it does not violate any intellectual property that exists already). Because our laws grant copyright to humans only, not to animals or machines. Does the human get the copyright to anything it prompts to generate?

There are so many layers of issues. I agree with your reply entirely. I also thought about mentioning those few exceptions, but the reality is that most companies creating games use these paid proprietary online models, because they are probably the best.