Over the long term, I agree (at least up to the limit where AI becomes so capable that it can replace pretty much every job humans can do).
But over the short term, you can't just have a person who was replaced by automation in their low-skilled routine job immediately move over to a higher-skilled and/or more creative job. It takes time to re-educate and re-train. And humans still have basic needs to fulfill in the meantime.
A lot of these problems are due to the failure of our current education system. But again in takes time to fix that and technological progress is moving at fast speeds and only seeming to accelerate further.
I agree that going backwards (rejecting the increase in productivity and abundance provided by automation and more generally technological progress) is not the solution. But I think hoping everything will just work out by itself in the free market with no changes in policy necessary is wishful thinking that will lead to suffering.
You're absolutely correct; they will have to learn new skills. But their old skills are now worthless, so what else should they do?
And yes, the current generations of people are incredibly damaged by the pseudo-education they received, but again, what else is there for them except to learn? Remember that while it's theorized to take 10,000 hours to become an expert in something, it takes only 20 to learn a new skill. It's hardly an insurmountable task!