I like your example and see how it could be useful both to help people practice editing drafts and to help get out of ruts.
I have to say that I think a lot of magic happens in the first draft and I'd hate to see the use of ai to construct first drafts common practice.
But it could be used when you get stuck in a story and need help getting from one point to another.
Definitely agree, yeah. I've never seen an output that didn't need fixing is the big thing. For ruts and getting over writers block and even for learning, I think it is a great tool. One that we should be aware of the limitations and benefits of, but not one we should rely upon.