I think you’re in the ballpark of the truth OP. Art and all forms of human creativity come from two sources, experience and connectivity. Nothing man has ever created came from a vacuum. We start observing and remembering the world from birth, and once we are old enough we begin to connect these experiences together with lateral thinking.
MLLM models just taking training data (experience) and connect it together in potentially new ways (lateral thinking). A close approximation of human creativity. Which will eventually become identical and then surpass any human capability.
Once we begin to understand that our human brains are not unique we will then be able to extend our creativity in ways that will make modern art seem archaic.
People need to stop being of afraid of what is new, despite what your lizard brain is telling you. Start accepting that AI is step in human evolution that will allow us to live in a world we have not yet imagined… or it will kill us all.