But in this case, the mods can't win. If they let AI art take over, HN will be condemning them for putting artists out of business. If they refuse to allow AI art, HN condemns them anyway.
On the contrary, AI will put a lot more artists in business by drastically expanding the range of artistic works than can be created and kinds of people who can create great works. Hanging a rectangle still painting on the wall is of limited appeal in the age of smartphones and VR. Imagining being able to paint walls and ceiling of entire house with aesthetically appealing, one of a kind art, for the same effort as currently required for a small still painting. A lot more people will be interested in paying for that and they will be willing to pay a lot more.