"Will AI replace <X>" just sounds like "will photos replace paintings" or "will video games replace movies" to me. Mediums can be similar, yet different. A lot of times now the line between a TV show and a Movie is blurred. They're still considered different types of media with different rules.
'Will people choose the more expensive option (the photographer) for a product that will take longer to produce'
to which the answer is never really going to be straightforward but mainly the people that value the product and the nature of it most certainly will, while those that are just looking for something as quickly, and cheaply, as possible without it being perfect, won't.
This is essentially the path of least resistance, it's been in effect since time began so it's not 'will it happen one day', people already use generative programs to create images and other media rather than go to an artist/photographer/etc because it's easier and/or cheaper but there will never be anything that can fully replace a professional photographer.
Also, AI doesn't exist, AI didn't create any of those mediocre images in that video.
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