I think you picked a very isolated and unconventional example to make your point. The corpses in the videos are indeed disgusting and an insult to life itself. In that, I agree with Myazaki. The engineers should have known better. But that is not to say that all AI-generated images are such.

It goes like this: engineers invent/make crayons, artists use them to make art. Simple as that. It is the same with AI. I have a piece on that: https://medium.com/data-driven-fiction/this-is-not-art-eb7bacac7f52