You're talking about combining different ingredients together to make something. I'm talking about one of the ingredients themselves. Can you get AI to generate a realistic horse, if you aren't allowed to train your AI with any images of horses?
Probably because the model was trained with anime images and somebody dded a lora or a prompt to make it more realistic.
If it becomes commonplace, no-one will bother making the real thing anymore, for much the same reason that films use special effects rather than putting their actors in real mortal danger. It is expensive, particularly in risk premium, to film the rape of actual children compared to making virtual CP with generative AI, and hence the former will be driven from the market.
Why do I feel like that is a strange application of Gresham's Law?
Well, it's an economic argument involving the idea of things being driven from the market, but it's different in significant ways (Gresham's Law relies on legal tender laws, and operates in reverse without them; also, good money driven out by Gresham's Law is hoarded, whereas here we're talking about RLCP simply not being made at all).
You are forgetting that there are such things as power tripping assholes with lots of money who might want to watch this sort of stuff exactly because real people are involved.
