My interpretation of Miyazaki's "this is an insult to life itself" comment was that he feels that to depict a particular human experience you need to engage with it via your own humanity, and empathy is a nigh-unavoidable response during that process, and if you engage in some other way (eg treating it as a mathematical phenomenon) you will likely be doing so without empathy or thus humanity. So while his comment predates the current LLM etc craze, it addresses its essence.