Something you forgot to mention is how AI could make one or more tailored companions for people. Why even have friends who are real people when AI companions can be "much better"?

On the other hand, I think deep down, people will understand that it's a sad and lonely way to live. Some people will believe that lie that they're living a life that's real but others just can't. There will be people who'll reject the whole arrangement; some will reject it harder than others. The only question is how many and where will they go.

The thing is that vapid hedonism gets tiring. That threshold is lower for some than in others. Admittedly, there will be some who stay trapped. But those who refuse that will go out and seek something real and meaningful, wherever that might take them. One example I can think of is for one such person to get in touch with like-minded individuals and plan for starting a subsistence farming commune of sorts, where they will make what they need themselves. Case in point: there are the Amish in the USA. They never went away.

That said, I'm sure if the environment changes into what OP describes, I think we'll see quite a few Luddite communities spring up in response. Though that is a big if i deed. I really don't know how this AI thing will play out.