As is, I don't think it's greatest talent is really writing or editing. Everything it's put out so far is pretty bland and generic. Grammatically competent, sure, so it's 2/5, but it's flat and I doubt it's intelligent enough to string together a whole story. Instead, I wonder how it might work as a tool to fight writer's block. The blank page is intimidating, and sometimes at least giving you bland garbage to rewrite may be easier for some writers if they're having trouble just getting the scene started. Not sure though, all writers are different.

I think it might be more useful as a sort of "revision practice" thing. Editing your own work can be hard, as you're constantly seeing it through the eyes of what you intended to say and are filling in gaps that your reader - not knowing your own mind - can't. Editing other people's work to the point of rewriting it can be rather rude. So instead you get a grammatically competent but boring 2/5 scene, and you can figure out how to spruce it up into something better. And maybe by doing so be better at picking out when your own work treads into the generic and cliche and the voiceless.

Could maybe even work as a sort of challenge or competition thing. Put out an AI written scene and let people all try and do better at it.

Like, sure, eventually AI will probably get good enough to write stories for us and that's terrifying. We've already seen these recent AI tools all be better at shit than we would've expected them to be. But we're not really there yet.