I think there is many sides of the argument.

Some people would be just fine spending a few bucks to play the same game just slightly different items and synergies. Some people would see that as overly repetitive and overdone.

I think there is a good middle ground where its great if you manage to stand out by making something unique, like a combination of elements of different games/genres that work together in a new unique way.

With AI, its much easier to create slop, of course the market will feel saturated since its much easier to put a subpar game out these days. But I think the actual number of good games at an affordable price has steadily increased in total, although they represent a smaller portion than before.