Yep, I strongly agree on all these points. A few months ago I interviewed the economist Erik Brynjolffson on his idea of the "Turing Trap" -- i.e the penchant of business to look for AI and automation that simply replaces human labor (quick cost savings, but no increases in productivity) instead of using AI and automation to augment human labor (making individual humans more productive, and thus increasing wealth).

There are undoubtedly ways to use large language models or image-generators to do the latter, but at the moment it all seems torqued for the former ...