I wouldn't say it will collapse, its use cases will be narrowed tho, I still know hobbyists finetuning chatbots locally and integrating it to games, coding, writing, and stuff.
I think there's plenty of valid use cases for GenAI, it's disingenuous to say otherwise. And I would also say that it's more beneficial for individuals than it is for companies despite it being pushed by companies themselves.
"Personally, my problem is not with AI tech in itself, it's with how easy it is to get your hands on it and make literally anything you fancy with it. This is what a lot of the "AI for everything" crowd can't seem to grasp."
It's easy look at negatives of a technology to ignore its positives. Especially one like AI technology.