To some people, yes. To others, no. You’re replying to specific people who seem to be against the idea, and I’m guessing for them it detracts significantly from the experience.
At the end of the day all of the concepts we have in fantasy are derivative in some regard, so the line will vary just like it will vary for people that want to do total homebrew vs following a book.
My group dabbled with AI when it was at its peak buzz, and if I’m honest, my head cannon sort of ignores those bits. They don’t carry the same authenticity that I came to expect from my group. It detracts from my experience because I play ttrpgs primarily to learn about my friends and how they’ve interpreted a shared world, not to hear algorithmically mid fanfic. I’m also not crazy about following a book. With a book, at least I know someone willfully released the work into the world and is getting appropriately compensated.
I fell victim to this one on authentic “retro” N64 hardware, which has a hard plastic analog stick. Got an enormous blister right on the palm of my hand trying to win this tug of war. Of course, my young brain was able to hyperfocus on the game and completely tuned out any sense of pain in my hand. It was quite gruesome when I finally beat it and realized my hand was torn to shreds. I was at my neighbors place and I remember how shocked their mom was. She applied some cream that I think was meant for severe burns.
Nintendo would later run a campaign where they’d send you fingerless gloves for free to try to do some damage control on all the negative press when reports started popping up.