I have built something similar (without AI)which lets a group of children build a world together with their colored templates: dibulo.com - We have lots of schools / kindergartens using it.
I realized that I never read anything on Medium. I use it solely as my private travel blog, which is then read by family members, close friends and my nostalgic future me. The reason I like to use medium for that is that it is very easy to add content. The two biggest issues I have with Medium is that pictures can not be set fullsize anymore and that there is a (for me) useless sidebar. Not only are you now limited on how to present your content, but it adds a lot of distraction.
I tried it and I wonder how I could generate more images. I made a story and only had one image.
I would also love to print it out as a book (don't see myself reading a book to a kid on a laptop / tablet) and that every page would have an image.
Would also be good if I could define which content should be represented as an image.
We recently created one too, where you get a printable version: dibulo.com/editor - the next step will be to bring the templates to life again.