> Once humans are priced out of the market and stop producing works, what's AI going to be trained on? Other AI output? Let me know how well that works out.

Actually, the interesting thing about art is that humans will produce it even if they don't get paid for it. This is one of the points of Chokepoint Capitalism: that mega-corporations are driving the compensation for artists to zero because artists are going to produce art anyway, even if it costs them money. There are people out there still producing stylised swords even though there is absolutely no demand for them.

We live in a period where an artist can actually make a living just by producing art, it wasn't always so. That this is ending may be inevitable, but the problem is not that the market for art collapses. The problem is that our economic system is setup such that people need to doing stupid jobs (e.g. telephone sanitisers) to get money for basic necessities. We produce more than enough to give everyone a comfortable lifestyle. If we made a serious effort to make sure people didn't have to do stupid jobs to survive (eg UBI) then there will be many people who will sit down and write books all day for free. Because people produce art, it's in their nature. We just don't give people the time to do it.