Will this result in loss of revenue, then layoffs, then less content, leading to a death spiral. Is the future just AI slop everywhere?

Bots creating content, bots clicking on content, bots reading that content, and bots creating more content from it. It'll be like a capitalist cousin to Newspeak[1]; instead of a top-down enforcement of the language it will evolve by popular demand.

[1] https://en.wikipedia.org/wiki/Newspeak