Based on the pricing they're probably betting most users won't use it. The cheapest api pricing for flux dev is 40 images per dollar, or about 10 images a day spending $8 a month. With pro they would get half that. This is before considering the cost of the language model.
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How many times is this same article going to be written? Model collapse from synthetic data is not a concern at any scale when human data is in the mix. We have entire series of models now trained with mostly synthetic data: https://huggingface.co/docs/transformers/main/model_doc/phi3. When using entirely unassisted outputs error accumulates with each generation but this isn't a concern in any real scenarios.