Why is it crazy? My opinion is not a fact, its simply my opinion. I very much think its dumb to reject an entire indie game because its flagged as "AI has been used" when AI is slowly but surely being introduced into every simgle aspect of our lifes whether we like it or not. Many big companies are doing it and making A LOT of money out of it, so why get up on small writer's asses about it?
If its been used, i 100% agree they should flag it and specify it, but I also 100% understand and respect artists that chose not to, specially when their work is still in WIP.
And I think i see what you mean by "disgusting". AI art by itself feels empty, dead. But I do think it can still have its place in art and entertaiment industry somehow, we just have not found the right balance yet so everyone seems a bit lost. Hopefully we can find the right direction. But burying our heads in the ground to it is lowkey dumb, im sorry.