@awnlee jawkingIf you believe any number of pundits and theorists (Joseph Campbell, Anna Quindlen, and Stanley Kubrick came on in a very quick search), every story has already been told. What remains is telling the same story better.
I'm not sure that I agree, but it's certainly the case that the vast majority of stories can, in one way or another, be reduced to well-understood archetypes and plotlines, sometimes with an amazing amount of embellishment.
My suspicion is that Camp 3, being the camp who wants 'original' plots (mostly this means well-written, with interesting characters, etc, rather than some abstract 'truly original' criteria being met) but is willing to accept relatively seamless AI 'fills' for parts of the story, will be the camp that comes out of this in the best position.
I haven't done this yet, but I've read comments from authors who started doing it pre-GPT3 and had good results. The core of their stories is theirs. The lead character driving across town to a meeting is an AI fill, as might be a description of the office they're visiting, etc.
As a very indirect but (at least for me) apropos example, Edsger Dijkstra, a legendary computer scientist (and professor) refused to use word processors (and very seldom used computers at all). At the time, there was a considerable controversy over whether he was a visionary standing for the importance of logic and mathematics over simply understanding progressing, or a luddite refusing to use one of the most basic tools his profession had created.
The truth is, of course, somewhere in the middle. Dijkstra had a point - the mathematical / 'theory of computation' side of Computer Science (by which I mean logic, proofs, etc, not manipulation of numbers) is critical to many elements and is often neglected. That said, one has more time to think about hard problems if one isn't spending time pushing a fountain pen around a piece of paper.
And, as another side anecdote, Steven King has said before he prefers using a fountain pen because it's slower and he needs to think about which word to write since the cost of correcting is higher.
An all-AI work will certainly satisfy some people, though I would argue that those 'few name and plot location changes' will be so obfuscated that most people will consider the work to be new.
And some people will only be happy if every word was written carefully, with thought, using a fountain pen.
But many people will be in the middle, wanting interesting characters and plots that (at least for now) are beyond the capacity of an AI to reliably generate but willing to allow much of the 'background' to flow from guided automation.
One important caveat: current state-of-the-art technology (GPT4, etc) is based on a convergence of some theoretical breakthroughs a while back, the availability of cheap high-end computing hardware, and inexpensive access to high volumes of source text. Breakthroughs are unpredictable, but the odds of computing power continuing to expand are high.
Simply from computing power growth and the relentless expansion of the internet, the second and third factors are likely to continue to expand, and when we get to GPT5, 6, 7, etc, it's likely that some levels of 'creativity' currently impossible will become commonplace.