At the risk of rehashing the same conversation over and over again, I think this is true of every technology ever.

Personally I'm extremely excited about all of the creative domains that this technology unlocks, and also extremely saddened/worried about all of the crafts it makes obsolete (or financially non-viable)...

Do you seriously believe this[1] makes any craft obsolete or financially non-viable?

[1] https://files.catbox.moe/1uphaw.png

This is a fairly cool and novel application of generative AI[2], but it did not generate pixel art and it's still wildly incoherent slop when you examine it closely. This mostly works because it uses scale to obfuscate the flaws; users are expected to be zoomed out and not looking at the details. But the details are what makes art work. You could not sell a game or an animation like this. This is not replacing anybody.

[2] It's also wholly unrepresentative of general use-cases. 99.99999999% of generative AI usage does not involve a ton of manual engineering labour fine-tuning a model and doing the things you did to get this set up. Even with all of that effort, what you've produced here is never replacing a commercially viable pixel artist. The rest of the world slapping a prompt into an online generator is even further away from doing that.