People like that surely do see it, they just deny it publicly because they feel threatened by the technology.
No person with even a basic education can legitimately come to another conclusion and be honest. The only way I can see this happening legitimately is to not understand even the basics of how AI art works. Like, not even the first thing about it.
First off all, yes they can for all practical purposes. Or, alternately, neither can humans. So the point is academic. There is little difference between the end result from an AI and a human taken at random.
Secondly, LLMs aren’t really what people are talking about when they talk about AI art.