Their primary aim is to mobilize labor toward socially beneficial objectives
Debatable, and certainly not necessarily true. Fascism can also feature state-owned industries, or at least all industry is considered subordinate to the state. Even if the leaders have good intentions, their priorities may not align with the general populace. The way I see it, the workers do not own the means of production; the state does. Having single-party rule, high levels of censorship, and being generally authoritarian makes things even more problematic, because it hurts the argument that, "the workers own the state, so it's socialism."
I'd argue that even if gen-AI art is indistinguishable from human art, human art is better. E.g. when examining a painting you might be wondering what the artist was thinking of, what was going on in their life at the time, what they were trying to convey, what techniques they used and why. For AI art, the answer is simply it's statistically similar to art the model has been trained on.
But, yeah, stuff like game textures usually aren't that deep (and I don't think they're typically crafted by hand by artists passionate about the texture).