You raise a lot of interesting points. Personally, my biggest concern at this time is people relying on AI to give them good results, and some of your thoughts combined with this concern have inspired the following:

How about encouraging your students to use generative AI to produce an assignment, but the real assignment is in them validating the resulting papers' claims and critiquing them? I feel that that's an opportunity to teach both good research and writing, and critical thinking, as well as giving them an opportunity to learn the ins and outs of this new tech.