It's kinda funny, the general dread regarding AI in tech circles is mostly due to fears that all jobs will be automated away, while the concerns expressed by the researchers according to the author are ironically a lot narrower in the sense that they haven't learned the currently cool topic.
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Also, and not quite. I believe the author is mostly talking about how undergraduate and masters degree can already do what PhD students set out to do a few years ago, so they might complete their PhD but it will be them vs someone cheaper and younger with the same hot skills and knowledge. The extra PhD ooomph isn't providing more value.
I always thought PhDs often get long in the tooth because research takes a long time and things can change drastically over that period of time, be it the research doesn't go the direction they expected or the world around them changed? If I was to go down the PhD path I'd consider it might end up taking quite a long time, because of exactly what you mention in your comment.