So, isn't using a spellcheck, grammar check, and other software tools already "cheating" since it is not 100% a reflection of my own skills? Yeah, probably not, but I mention it just to show that the line is not quite as sharp as some might suppose.
WRT the article, it's another case where the author sets the bar too high, then triumphantly shows AI cannot reach it, with expression of earnest hope that it can never reach it. Eventually we'll probably get to the point where if it can't beat Homer or Shakespeare, then getouttahere.
But we humans are clever creatures. If there's a way to make a buck with a minimum of effort, we're all over it. People mentioned above how some will use AI to crank out hundreds upon thousands of novels, not caring about reviews or anything else, so long as *some* money is made, if only for a few weeks.
That aside, though, companies will use AI to create all sorts of copy, and this will affect countless jobs, and might even kill off entire occupations.
As for fiction authors, I can see using AI to try out plots, or to take existing work and filter it through other styles, rather like using a grammar checker (cf. supra). I don't doubt there will be a time when we can target specific passages, or types of writing as in: modify the dialog, or tighten the description, or speed up the pace of Chapter 7. And, much as with the grammar checker, the author will still be able to accept changes, or just use the changes to inspire still further, fully authorized (*ahem*), revisions.
In short, except for certain occupations, the question is not will AI write great fiction, but rather how will authors use AI in the process of creating great fiction. If taken from that angle, I suggest the future just arrived. Check your front porch.