Chess, at some point, and after you move beyond the opening, is creation.
People didn't stop painting because photography exists, they created new forms of photography. People didn't stop writing music or using new / unique instruments when synths and programs came along.
I genuinely believe that people will keep creating, it's in our nature, and we also like things made by other humans, because we can relate to them.
Imho your argument is faulty at its base. The objective of chess competition isn't to produce a reasonably good game for the lowest possible cost (blunders and comebacks are actually pretty valuable parts of the spectacle). It also isn't the reason why chess players get paid. Yes, running still was a thing even after the invention of bicycle. This is just invalid logic in my opinion.
Chess hustlers in central park don't play for money, or for a competition, they play for the fun of it, for the sake of chess itself, for the sake of exploring the game, the thrill of finding a solution.
It has nothing to do with whatever "value" the capitalist system assigns to the act as a side-effect.
Chess hustlers are a particular niche case and I think many of them would disagree with you (the money part). Making arguments in such an absolute manner and speaking on behalf of many people (mostly with whom you share very little I assume) is guaranteed to be wrong I think.
People didn't stop painting because photography exists, they created new forms of photography. People didn't stop writing music or using new / unique instruments when synths and programs came along.
I genuinely believe that people will keep creating, it's in our nature, and we also like things made by other humans, because we can relate to them.