It is amazing, and at the same time disturbing,
Yes. It is both. I am positive that AI is going to make a massive impact on humanity. I also think a lot of that impact is going to be negative for the majority of humans, unless we completely redefine what it means to add value in society, and what value is as a human. And it requires a large majority to accept a redefinition.
If machines dominate areas that once gave us identity and value, what will we have left? Maybe hobbies, maybe religion, but that doesn't seem enough
It is definitely not enough. I think there is something to be said of "idle hands doing the devil's work". There is a reason that society is failing at so many levels, and this exacerbates it.