I also have until now only known of writing AI like copy.ai and others. This is totally new to me as well. As for it’s place on Hive, I think everyone will have varying opinions on it.
It’s a good thing the watermark is put on it, to show that it’s not yours but was made with an AI(another service which is not yourself). I wonder though if there’s a chance the watermark can be removed. That would pose the issue of theft. But as long as people are willing to admit they didn’t spend their time and own skills to create the art, I don’t see a problem with using it. My opinion though.
From my experience, I highly doubt. As for the watermark, they can be edited and omitted. Some of these AI doesn't have watermark like the discord one where you just generate the art and can download it. Some of the posters on hive did a bit of fine tuning to make it look more "humane" but that's where the effort is considered I think + the effort of them choosing a creative prompt.
If the watermarks can be removed, I see a lot of people presenting these artworks as their own in attempts to deceive the community and cheat their way to rewards. I hope people don’t do it though. That they’re honest enough to just admit it’s not created by them. That’s nothing shameful or difficult to do if you ask me.