I don't know. I only believe that things will be worse if individuals cannot control these AIs.

Maybe these AI have reached a peak (at least for now), and so they aren't good enough to write a compelling novel. In that case, writers who produce good novels and get lucky will still get paid, because people will want to buy their work and read it.

Or maybe AI will quickly surpass all humans in writing ability, in which case, there's not much we can do. If the AI produces books that are better, then people will want AI produced books. They might have to get those from other countries, or they might have to get them from a secret AI someone is running on a beefy computer in their basement. If AI surpasses humans then that's not a happy day for writers, no way around it. Still, an AI that surpasses humans might help people in other ways, but only if we allow everyone to have and control their own AI.

As the industrial revolution threatened to swallow society Carl Marx wrote about how important it was that regular people be able to control "the means of production". At least that part of his philosophy has always resonated with me, because I want to be empowered as an individual, I want the power to create and compete in our society. It's the same now, AI threatens to swallow society and I want to be able to control my own AI for my own purposes.

If strong AI is coming, it's coming. If AI is going to be the source of power in society then I want regular people to have access to that power. It's not yet clear whether this is the case, but if strong AI is coming it's going to be big, and writers complaining about pay isn't going to stop it.

All that said, I believe we do a terrible job of caring for individuals in our society. We need more social safety nets, we need to change to provide people better and happier lives. So I'm not saying "forget the writers, let them stave".