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So to save the idea of $300 (logo design with "local" talent is never $300, it is only that cheap if you offshore it), they tried to ruin a business that presumably employs multiple LOCAL people full time (way more than $300) with 1 star reviews to "punish it"

This is an internet mob at its worst. Not an example of anything to emulate, in my opinion.

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People hate AI, and this is one of very few ways people have to punish AI. It is bound to happen.

And in either case, this example destroys the framing that coffee shop owners are the ones who benefit from the systemic art theft employed by AI companies.

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Sure, just like every software company using AI is going to go under and every video game using AI will fail?
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I am not sure what you mean. The AI backlash is real, and it has real and obvious effects in the real world, with written articles to prove it.

If you are attempting here to shift the focus away from coffee shops (may I remind you, you were the one who brought that as an example) and into video games or software companies, I simply reject that attempt.

That there exists a software company which uses AI in their product and is not failing has no bearing on the framing on how a coffee shop which is too cheap to pay an artist for their logo does indeed look cheap to it’s customers who will be inclined to give that café a negative review or otherwise avoid said café.

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