The transapocalypse questions before reflect on the trust crisis I was talking and thinking about.
Not only you will not be sure if the woman you have a boner for is a woman, you will not know if its even a real human (thought, some would argue that is better?).
The effect is more subtle than you think, imagine you see a new model that is massively cute. Today you can enjoy that, you can enjoy that finding. In the near future, you will instantly jump to "probably AI generated".

While there is still a physical reality distinction, actually finding out it is real will be even more rewarding.

But in general, we will be pulled towards either embracing the immaterial or the void.