"Have you considered arguments from emotion?"
yes and they're all bad
I actually literally said in two different spots what some arguments that I think are decent against ChatGPT NPCs are, and why I probably wouldn't want to knowingly play with such things, so just realize that what I'm arguing with here is your arguments presented, not arguing for ChatGPT to be integrated into Arelith.
ChatGPT is used to write boilerplate code which I might sometimes be writing (or, nowadays, "which I might sometimes ask ChatGPT for an idea how to write", if I'm feeling particularly evil and want to use the evil-bot that only does evil things (apparently)), and I feel aaaaabsolutely nothing over it. I also make chainmail keychains and bracelets and stuff sometimes. I'm not offended by people buying mass produced factory-made jewelry. I also used to play the piano quite a lot, and taught myself basic guitar. I am not offended by people using DAW's to make music (or using AI generated music, which I think has existed in some form for a while? Not sure.)
I actually think there's a real opportunity for personal growth for people on that particular front. The attitude you are espousing leads me to believe you'd teach a child not to even bother with art in a world with ChatGPT being a bit more popular, because "why bother, just ask the computer, what a dismal capitalist world amirite?" That's the implication of the thing you wrote out, if that's how you actually see this issue. "Why do anything, a factory already does it cheaper." Do you all actually think that's how the world works??? There are literally farmer's markets JUST so people can go buy locally sourced overpriced produce and meat, in basically every city on Earth, rather than the cheaper mass-produced stuff in grocery stores - and those markets make money. Quite a bit of it, in some cases.
Art isn't going away, actually I bet people will pay extra for art that can somehow be verified to not have been altered or generated at any step by ChatGPT or another generative AI, in the not-too-distant future. Art is never going away lol. Thinking it will, or thinking there's some grave moral fight being waged here (or that using the word "capitalism" means anything here), is what I mean by hysterics.
I'll be honest. The entire issue with ChatGPT has made me hate most people who (usually self-aggrandizingly) identify as "artists", because they're usually people who agreed with me and most other people over the past 5 years about the need for electric vehicles, AI driven vehicles, the death of fossil fuel industries, increasing automation and optimization in fuel and energy intensive fields to reduce emissions and waste, and more, all of which cost jobs... But the moment a tool dares to intrude on your favorite pasttime (or in a few cases, side gig - very few of the people on this server are full time artists of ANY variety, though I'm sure there are some), to make some (usually mediocre) art, suddenly the artists are grabbing their hammers and ready to smash textile machines, and it's all hands on deck to espouse the evils of technology, and then they wonder why they get called hysterical.
It's the ultimate in champagne socialism (you brought up capitalism for no reason so this is just fair play). "Just learn to code, coal miners - wait no not like that, keep paying me to make bad Patreon art. This is oppression reeeeeee."