As far as the use of AI for art goes... Out of principle, I'm against it.
As a visual artist myself—paper-&-glue collage, 100% analog—I'm having a hard time understanding what the controversy is about. Many artists already use digital devices and digital effects to a lesser or greater degree. Feeding text into one of these software packages can stimulate ideas or provide artistic "first drafts" to refine further by hand.
There's an aleatory quality to the results that appeals to me. (I sometimes use random number generators to choose images, to determine where I glue them down, and so on.) People always use tools and materials to make art. Software is just another tool, isn't it?
It's not like the AI is making aesthetic decisions for you! If you choose to take what the AI spits out and present it unaltered to the world, it'll suffer the fate of any other artwork: ignored, celebrated, reviled, and/or sold. =shrug= Should the artist make it clear they used software? Yes, but not for any ethical reason. Artists always include a brief note about what media or mix of media they use: acrylic paint, marble, gouache, steel, yarn, whatever. It's a convention.
Renowned artist-musician-writer Laurie Anderson has an intriguing piece of software that does the opposite of what these art-making AIs do: it turns pictures into text. From what I understand, she taught the software by feeding it a whole lot of her own poetry—the idea being to generate poems that're kind of in her style. She gives what it produces the classic rating by thirds: 1/3 is crap, 1/3 so-so, 1/3 surprisingly good. When she demonstrated it on 60 Minutes, Anderson Cooper fed it a photo of his baby. The resulting poem was a little discursive for my taste, but it had one delightful little cluster of lines that moved Cooper to tears. I was impressed.
As for the possible image for CWNitz's book cover, I like it! The design of the crown is especially fun. I can easily see this becoming a thing for writers who either don't make art themselves or can't afford to hire an artist. Why not?