It's not a problem of one-shotting it. It's that the details cause a collapse. Even if you tried breaking it down which i have, you'd run into the same problem unless you tried holding its hand for every single page and then - what's the point ? I want to read the story not co-author it.
I dunno, there's a certain amount of fun in "writing" a book with ChatGPT. Like playing a video game with a bunch of different endings instead of a watch a movie with only one. does the hero save the day? or turn into a villian! you decide!
The etymology is pretty much irrelevant. In eg German, the word for novel is 'Roman'. But German readers don't expect their novels to be anymore romantic, nor do English readers expect their novels to be more novel.
LLMs have been producing new things all the time. The question was always about quality of output, never about being able to produce anything new.