My main issue with AI is not with the technology itself, but the way it is used. Technology should provide ways to enhance creativity, not to be a replacement for it
I agree with your sentiment but I believe AI is not much different from traditional tools in that regard.
The way people use AI to create artwork may differ from one person to another. Some use it to create original art while others use it to 'remake' existing works or plagiarise them. Some people like to throw random prompts at AI, hoping it will create something funny or strange (and it may do that from time to time).
But is it so much different from the way it was before AI? Maybe so quantitatively, but nothing fundamentally so.
Traditional artists copy other people's ideas or styles all the time, and when a sufficient number of them do so, it becomes a 'genre' or a 'trend'. And many try to make something new out of the existing works of others, be it called collaging, homaging, remaking, 'manip', or whatever. The artistic value of such works is usually judged by how much originality the author bestowed upon their work in the process, not by the medium they used or the mere fact that they used an existing work.
As to the problem with agency, I believe we have enough artists who do things like spraying paint over a canvas randomly and hoping people would fancy there must be some deep meaning behind the act. AI isn't that much different in this regard either, maybe except for the fact that it can create something more exciting than random paint patterns.
Of course, there are extreme cases like using AI to generate a whole South Park episode or even a novel. But even in such cases, it's ultimately up to the human author to decide the theme and direct the creation process, like how a film director can create a film by telling others what they need to do without being able to act or write themselves. All they need to be a good film director is a vision of what the final result should be, and an ability to direct others to actualise what they imagined. Directing AI to produce a whole story or an episode isn't much different from that.
If the concept of photography as a valid branch of art can survive the era when almost everyone owns a smartphone and takes random crap photos with it, I believe AI might remain a legitimate tool of art even if there are people who flood the internet with low-effort AI-generated images.