Can't you technically already do this with more primitive tools? like...just draw it? Or use photoshop filters?
This just greatly expands the number of people capable of doing it.
Plus i'm pretty sure the laws in place already would get someone prosecuted for the creation of the art, and said person would probably use the tools even if they had to use illegal means.
Basically i'm not sure this line of reasoning really does anything but hurt benign or even legitimate uses of AI.