Why do you imagine yourself you be in competition with others while doing hobbies? Do you not find pleasure in the doing?
Most people find joy in doing work that's useful to others.
I don't know if it's common but I generally don't like to be bad at my hobbies. I like it when I can do things well. I've been learning the piano recently and striving to play more difficult songs is what makes it fun.
I'm sorry, but this is not realistic. Life is complex and involves many variables. You are right to engage with this question, but you are oversimplifying to the point of implying dishonesty, if I'm being frank (assuming you are not very neuro-divergent!).
No pleasure really anymore, my hobbies were coding occasionally and there's no point to it. Anything I write will be outdone in 2 seconds by someone else.
Recently I started rebuilding a custom d3d9 hook for an old game and it was really fun and I planned to release it to the community. But before I could, many many others had an LLM do the same thing and my work was obsolete in a moment. There went that hobby... so now I'm hunting a new one...
I gain no joy from that, the joy I would have gained would be from other people using my work. Now they can produce my work without me entirely...