Also, Chat GPT at least still writes at the level of a somewhat talented ninth grader. Its prose is stilted, and the way it structures essays and stories is super formulaic.

It's absolutely not at the level it can replace a talented human writer yet. (I have no doubt that day is coming, probably sooner than we think, but it's not here yet.)

So publishers making the switch will see the quality of their content drop, and with it the number of clicks / revenue they get. Enough to offset the salaries of all the writers they fired? Probably depends on the publication. For clickbait farms, probably not, but the higher quality the readers are used to the more the publishers stand to lose.