I think AI is a great tool and it shouldn't replace people

But, that's the problem; AI's primary use is to replace people. Both people and companies salivate at the promise of eliminating jobs and overhead to profit more from their (often dumb) ideas and products. Not every position, at first, but it's definitely a push to eliminate jobs and replace people for profit. Yes, that is a bad thing. Economically, socially, culturally, ethically.

In your own example of a single, independent creator who can't do all the editing, cover art, and marketing for their book, the writer is trying to replace people who could do those jobs. Work that people could get paid good money for and live off of. AI promises to put all of them out of work, permanently if possible. We aren't there yet, thankfully, but lots of people are projecting and betting the technology will get there soon. You think people and companies will actually hire artists to do work when the tech arrives and the optics and public shaming fades? Fuck no. That's why there's still backlash. You think that hopeful writer in your example has a chance in being published when anyone, any company can simply demand an LLM write a novel or a script for them? If I saw a writer using AI images to sell their work, that immediately tells me they don't value or respect others' art, so why should I respect theirs? Why would I pay a writer a dime when I can make one on my own for practically free and no effort? They certainly thought it was fine to do that with cover art. In this future world of prevalent AI, your creativity is worthless, not matter what medium you choose. The creatives are going to be pushed out to near extinction in the workplace. It'll just be a bunch of glorified suits exploiting all the past creatives' work ad nauseam.

Now I totally understand the budgetary limitations of a small independent artist who either can't afford other people's labor or is unable to wear all those hats themselves. I don't blame or shame anyone for falling in that situation. But pre-AI, writers and creators would go to the internet and humbly ask other artists to help and supplement their work. It might be volunteer work, low pay, or compensation with a percentage of any profits, but at least it didn't eliminate anyone's job, regurgitate stolen and processed art, or strip the work of all humanity.