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You might be partially right. But there are so many great manga and manhwa that could be converted over to anime. It also doesn't explain shows like One Punch Man that were just lazily animated.
Blue Eye Samurai is not an anime. It's an American production that was animated by a French studio. And the Japanese supposedly hate it, because it looks nothing like Japan. They say it looks like a mashup of Chinese and Korean culture.
Even if it were an anime, that is the exact type of slop he is talking about. That series is gorgeously animated, but the story and characters are ripped off from a million different IPs, but not in a good way (like inspired), but in a way that is very cut and paste. I saw a half a dozen ripoffs, but others were able to catch some others on top of what I saw. For example, the MC is Jin from Samurai Champloo.
There was also too much over the top, cheesy sex and violence, which is a characteristic of anime slop. When stories and characters are lacking, just go over the top with sex and violence.
Correlated to the advent of AI slop.
Cartoons were also sort of like this in the 1970s with templates and stock footage. They took shots from a old Krantz-era Rocket Robin Hood villain, dubbed in Spiderman, and viola; it was suddenly a Spiderman villain for Marvel. One of many examples.
Anime, when really well done, is a welcome escape from mass entertainment, which tends to be dumbed down. For example, Psycho Pass was heads and shoulders better than Minority Report, a dumbed down movie that took out all the interesting philosophical questions of the original story.
People also watch anime because in the US, studios decided that Americans didn't like lushly animated 2D style animation anymore and just want to watch crudely drawn, crappily animated adult shows with edgelord humor or 3D movies of talking animals.
Absolutely not. This has been a problem for a long time now, to where the most famous director of all time (Miyazaki) complained about it years ago. It's because the industry became overrun by otakus, the Japanese equivalent of Comic Book Guys, who don't want deep storytelling with compelling characters. They just want boobs, cute girls, harem fantasies, etc.
That's merely a part of the overall problem.
On that note, I might point out the same Krantz studio also gave us Fritz the Cat...
I still remember the time when Sword Art Online came out and then for years there was a wave of isekai (and still is to an extent).
They couldn't even be bothered to spend any time on the backstory. Some guy was ill, he died, now he's in another world. No explanation or character development. He runs into a cute girl who becomes his companion, and by episodes 3 or 4 he's run into a few more cute females who all become his companions. And at least 1 of them will be underage, and there will be a scene where he accidentally sees her naked.
Is that the one where the guy is a legit adult pedophile, gets turned into a boy when he gets transported into another world and then gets away with lusting after little girls? Because that's a perfect example of what I mean. Anime has been on a downward slide for a very long time because of this otaku issue. Nothing to do with AI, as someone else said.