Diffusion has already created infinite, high quality content. But because the market is already saturated, no one cares.

But the anime market is tiny, as someone else pointed out it has been on life support since 2008. But with this technology you could have infinite amounts of high quality anime.

It's not so much the growth of technology but of value production here that amounts to the singularity, but is the difference relevant to the average consumer?

If say the human in customer support is replaced with an AI and I can't tell from the quality or the cost, then that makes no difference to me, even if it is technically the singularity. But if the quality goes up and cost goes down to me the consumer as a consequence, then yes that is an infinite cycle of evolutionary improvement, and thus the singularity becomes reality to me.