Only a small percent of people will actually produce ideas that other people are interested in. For most people, AI tools for building things will enable them to construct their own personalized worlds. Imagine watching movies, except the movies can be generated for you on the fly. Sure, no one except you might care about a Matrix Moulin Rouge crossover. But you'll be able to have it just like that.

> A Cambrian explosion of half baked ideas,

Well yeah, that's how evolution works: it's an exploration of the search space and only the good stuff survives.

> filled with hallucinations,

The end products can be fully AI-free. In fact, I would expect most ideas that have been floating around to have nothing to do with AI. To be fair, that may change with it being the new hip thing. Even then, there are plenty of implementations that use AI where hallucinations are no problem at all (or even a feature), or where the issues with hallucinations are sufficiently mitigated.

> unable to ever get past the first step.

How so? There are already a bunch of functional things that were in Show HN that were produced with AI assistance. Again, most of the implemented ideas will suck, but some will be awesome and might change the world.

They were already not getting past the first step before AI came along. If AI helps them get to step two, and then three and four, that seems like a good thing, no?