I am less concerned about people's body images, as the airbrushing and then the flat-out altering/photoshopping of images was doing essentially the same thing. The difference, of course, being that at least a real person was used as the basis for the artificial "doll" they created.
Likewise, the issue of representation isn't the fault of AI; it is a reflection (albeit a poor one) of a business's values (or lack thereof). As the article said, they can just as easily artificially create AI images of people of different etnnicities, abilities and sizes (they claim the technology isn't "there" yet regarding diverse body sizes, but I think it is more likely that no one has really tried).
I wonder how far things will go before there is a consumer backlash. I just think at some point the newest "trend" will become actually interacting with people instead of texting or social media, people wanting to create and consume actual human-created art, and wanting to see real people instead of artificially generated things. In other words, everything that's old eventually becomes new again.
On the other hand, people have their hair on fire over a thousand other legitimate issues right now, so that may take a while. Ultimately, I land on what a number of other people have mentioned: AI is a disaster regarding water usage, power drain, and quality of life for anyone in the area of a server farm. We have an energy (and water) crisis to begin with; this isn't where our priorities should be.