I remember mentioning to colleagues about a year ago that once people can generate images of themselves in whatever location, doing whatever they can imagine, a large portion of social media imagery will lose its power. People will divest from these images because they will no longer be assumed to represent the actual life of the person in the photo. In fact, this could be a very positive step in freeing people from all the self-imposed psychological torture they've suffered since the rise of apps like Instagram. Of course, it will also make it virtually impossible to "trust" any kind of image-based media (and fully generative video is obviously just around the corner), so "seeing is believing" will necessarily be out the window.
Presumably companies will start adding some kind of verification process, complete with a tag or watermark of some kind, to try to reinforce (or resurrect) belief in imagery, but this will probably be kinda shaky for most viewers. The bond of the "seeing is believing" basis for truth will be broken for media and only trustworthy wrt to actual lived experience... which again might not be such a bad thing... (very tricky and complicated, but not bad from a psychological point of view)... We may wind up moving into a more participatory, engaged kind of culture. (Yes, that sounds a bit fantastical, but who knows; large numbers of young folks are buying music on vinyl again, so anything's possible!)