I don't think a photo real animation with no back end labour can be described as just a better animation tool. Current animation tools, critically, take years of practice and hundreds of paid hours to create each individual work. A production going from "writer, director, and 10,000 hours of professional, lifelong technical artists" to "writer, director, and a 2 month subscription to OpenAI" is, in my opinion, something to pay attention to and expect disruption from, whether you categorize it as a "just a better tool" or not.
Switching perspectives a little, these tools are absolutely perfect for hobbyists like me. I'm never going to hire artists, so my productions go from crap CGI to amazing CGI, and no one loses a job. There are no downsides! If that's the angle you're coming from, then I agree with you.
However, for anyone making a living off of video work, there's a very very large chance that the amount of money that anyone is willing to pay for ANY kind of creative content creation is going to decrease, fast.