I think that enhancing existing artwork is a great use for image generation. It digests the existing artwork and fills in the gaps for upscaling. It’s a step beyond running the content through an upscaling filter and saving it for next time.
This is not removing artists, and the opportunity to perform this work manually existed for 20 years. It is big N’s miss for not preserving the original HQ artwork for a rerelease. They would charge 75 for the new product either way.