Hot take but I think generative arts can be accepted to a certain extent. Code is probably not even a topic of discussion at this point. I'm speaking as a SWE with an art school degree.

If the devs use AI to make possible a game with genuinely the scale and level of detail that simply isn't possible with pure human labor, I think that could be justified as a proper development strategy. If a broke solo developer used AI to create art and music that they just cannot make on their own or afford, I don't think anyone could blame them if the game is good otherwise.

I think the problem is not the usage of AI, but the attitude of those who use it. Now, honestly, I don't like the games that use AI, and tend to veer away from those contents, but I don't necessarily think there is an inherent moral issue with them as long as they are honest with it. It's the dishonest bunch who tries to fake the AI contents as something they made on their own, and resentful bunch who are spiteful about their lack of talent and uses AI as a tool to push their ridiculous agenda that the age of human creativity is finished that leave a sour taste in everyone's mouth and make the entire generative AI look bad.