> e.g. AI therapy being substituted for real therapy, AI products displacing industrial design, etc.

That depends on the quality of the end product and the willingness to invest the resources necessary to achieve a given quality of result. If average quality goes up in practice then I'd chalk that up as a net win. Low quality replacing high quality is categorically different than low quality filling a previously empty void.

Therapy in particular is interesting not just because of average quality in practice (therapists are expensive experts) but also because of user behavior. There will be users who exhibit both increased and decreased willingness to share with an LLM versus a human.

There's also a very strong privacy angle. Querying a local LLM affords me an expectation of privacy that I don't have when it comes to Google or even Wikipedia. (In the latter case I could maintain a local mirror but that's similar to maintaining a local LLM from a technical perspective making it a moot point.)