Accepting 100% that it should be in some way deemed unacceptable (socially or legally) to fake what an apartment actually looks like, I did find using an image model really helpful in making design choices for my bathroom remodel. Mostly about whether to tile certain things where we couldn't quite visualize ourselves what the effect on the entire space would be.
There's a big difference of someone using the tool to make design decisions for work they are actually going to implement vs someone using the same tool to make one think it has already been done
It should be the same as rule #1 of machine translation: never machine translate something for your recipient unless they ask for it. They may not need it. If they do need it, they almost certainly know where to find machine translation. A bad translation with no original is worse than nothing, because you often end up having to mentally backtranslate a broken version of your native language in order to understand what they were trying to say.
Likewise, if I want to see AI renders of what the apartment may one day maybe look like - I can ask for it. Or make the render myself with my tool of choice. But I'll need to know what it actually looks like to do that.
Sadly Google in particular don't obey rule #1 even for machine translation, so it's going to be an uphill battle to get companies to understand.