Strictly speaking, I don't think it is the generation or creation that diminishes their value. it is the consumption.

You said it too:

> If I see a million fake Tom Cruise videos, then it oversaturates my desire for desire for all Tom Cruise movies.

The trick of course is to keep yourself from seeing that content.

The other nuance is that as long as real performance remains unique, which so far it is, we can appreciate more what flesh and blood brings to the table. For example, I can appreciate the reality of the people in a picture or a video that is captured by a regular camera; it's AI version lacks that spunk (for now).

Note that iPhone in its default settings is already altering the reality, so AI generation is far right on that slippery axis.

Perhaps, AI and VR would be the reason why our real hangouts would be more appreciated even if they become rare events in the future.