I am tired of correcting the same misconceptions and I love Le Guin too much to give her crap about it. I'll just make general remarks.
The reason we all (AI researchers and engineers) are excited about LLMs is not that they can mash up and merge existing piece of work. It is because they can recognize very high level abstraction patterns, understand these, merge them with others and create coherent outputs based on these new patterns.
Even if fed only sexist and capitalist literature, it is capable of imagining things that go beyond that. It can extrapolate the notion of freedom expressed by a rich male narrator into freedom for poor women. I would argue that this is very similar to the way human authors explore new horizons: adapt known patterns to new objects. New patterns are learned from our dataset. Right now for LLMs it is only text, but 2024 is looking like it will be the year of the AI-enhanced humanoid robot. Get ready for a ton of subjective experience datasets.
Yes, we can use it to produce unimaginative works mimicking those produced by the entertainment "industry". Fun fact: these models will soon run on your local machines (for images they already do) and these industries will be destroyed by the post-scarcity the generative model actually cause.
The great surprise of the AI revolution is that it is barely capitalistic, despite what the dystopians say. Companies communicate a lot about their private models, but in a scenario that no SciFi author would have dreamed, it turns out that research in the field is pretty open and that open source models are on the tail of private ones.
Software is probably the domain that is the most advanced in terms of post-capitalism: open source provides non capitalistic post-scarcity, and AI spawns from this domain.
People should not be blind to this fundamental aspect of the field.