I understand your point of view regarding AI image generation. But I think it’s a tool, especially for people who have zero drawing or editing skill. I agree that jams are here to learn do some new things, but people like me (I’m a developer with no drawing skills) would never be able to participate to this kind of jam without having access to some sort of tool to illustrate the story. And for me the learning part of this jam would be to focus on the writing of a story, not learning how to use photoshop or other illustration tools. I’m pretty sure you would agree that for a perfect newbie in this area it would take a lot of time to do a very simple thing in PS.
Of course, if I were to submit something, I would priorise using open source content or try to do my own things in a first place, but working with AI can also help and inspire. I would probably ask somebody to do the art if I were to do a commercial product. But for a game jam I don’t think it would be possible to spend 1000€/$ or more.
As the jam is about writing a RPG story, I think we could miss the creation of people with excellent game design ideas because they don’t have access to illustration skills. For me this would also be disheartening.
As I said I’m a developer and there’s tool to generate code (that probably also comes from shady places without really caring about copyrights)… but I think this also helps people with less development skills to submit entries for other types of game jam (video games), maybe people who are more focused on design and illustration and less on code.
(Please keep in mind that I’m not an native English speaker, so my sentence might not be exactly like I would have phrase them in my mother tongue, and I hope I didn’t offend you in any way, I’m just trying to give another point of view on this very difficult topic that is AI 😊)