"capable of creating full, well written stories"

I'm going to need to see some proof of that.

I spent 6 months playing text games with NovelAI, and yes, there were times the AI's input was almost spooky in the way it seemed to understand context. ... And then the next moment I tell the bot my character feels like they're a different person now after the stuff that's happened, and the AI goes "Oh no! We must hunt down this doppelganger!" Right, yes, let's go do that, my lil bot.

I know the AI model ChatGPT uses is more advanced that what NovelAI has right now, but even so, I've seen examples of it getting stuck in a loop and repeating itself. People trying to sell the product will naturally focus on the examples when it seems like it's super-smart., but I'm pretty sure the AI's brilliance is still largely coincidental when it comes to more complex topics and concepts.

I personally have nothing against AI assisted writing, and the endlessly evolving text games a super fun. But if it's true that people's fanworks have been used to create a product that's being sold, that's where it starts to get ethically iffy.