I've been thinking about this a lot lately. I feel very averse to consuming AI media, but it's not super obvious to me why. In some sense, I agree with what you're saying, but in reality no pixel art of a city I've never been to would elicit that feeling in me. Maybe I would feel differently if it were art of the city I live in and had some pixels dedicated to specific things I think are cool about the city, but for this website in particular it could be the best pixel art of SF ever made and I don't think it would be all that meaningful to me.
The main conclusion I've come to is that it's less that I dislike AI art inherently, and rather that I value the human decisions in media that I personally care about, and AI media threatens both its creation and how much other people value such things.