Okay, again, I'm a little lost as your throw stuff at me. I think you're saying that the system you're describing above
1 - favors mass production
2 - utilizes socio-political data points.
I guess you're tying these two ideas with the Lovecraftian word? So, it's Lovecraftian mass-production because it connects sociopolitical data points? I always thought Lovecraft was, like, a kind of horror movie. But I guess you mean Lovecraft monsters have lots of tendrils.
So, maybe what you mean here is that the dynamic you're describing above leads to a new kind of mass production, characterized by tendrils that feverishly connect producers and consumers based on their socio-political data points.
Then, it moves to what you care about, which is the way human identities become part of the commodification. That's the main thing you probably want to be getting to from the beginning.
Art in the digital environment is different.
Art is pre-figured to be copied and copied, and evermore compatible with the algorithms that decide who gets what.
But, more important, the way that artists and audiences are connected, identified, and categorized by the algorithms may be having a profound effect on us.