I think it will improve the internet by adding more diversity.

The reality is that most websites are built from templates using the template content and images as a base. Given AI generation, the "template" starting point turns into something unique, more tailored for the needs of the site owner.

This AI is basically a search engine layer for the wix library of components.

It uses pre-defined colour palettes, with minor modifications.

I hope you’re right, but I don’t understand how, by design it’s not supposed to come up with completely new things (even though that’s what the marketing blurb says).

Note that you are replying to someone who works for Wix. I would take what they say with a grain of salt.