First I thought "Oh jeez, what a wall of text" but now you gave me my own thoughts that I want to share.
I don't think callling genAI output "not art" is a very defendable statement. I believe art is ultimately a type of activity, and one that is very hard to draw a strict line around. If I find a cool piece of driftwood and frame it, did I do art? That's kind of what that artist did when he picked his album cover.
But I also share your sentiment about "AI artists" pretending to work in a medium of which they understand 0% of the nuance. I think it makes more sense to call those people hacks instead of "not artists", because that's what you call people who use shallow, formulaic methods to dabble in a medium of which they are wholly incompetent.
And finally, AI as toolset does of course uniquely pander to hacks.
Didn't come up with that simile, but it might fit:
It's like a fleshed out version of a 12 year old thinking "everything would be great if I was in charge, because I'm smart and people are dumb"
Something about people who are too impressed with their own smarts and swap pet theories that make them feel smart.