A machine might be able to make an objectively better thing, but that’s not what people are paying extra for. It’s the story about a real person applying their skills and effort to make it. Demand for that will likely never cease to exist. I bet it’ll just increase.
I think there are things that cannot be automated, or at least not practically. For example, yesterday I saw handmade cat tree scratchers, which were some large branches screwed together.
But I think most of people do care much more about price then producing entity. Handmade products are premium, niche and artistic. But no-one would buy handmade bricks.
That all depends on where you are “on the curve.” Above $500 for a painting to hang on the wall? People want at least a good story to tell people about it, if not a personal connection to the artist. Below $50? Yeah, price is king.