This entire thing is downstream of the lack of authority crisis in literature and art.
Most MFA faculty are scared of their own authority (partially because students revolt and complain if you tell them a poem needs some work, but other reasons too)--so they lean on political and moral authority instead of their own taste and judgment of a work of art.
She's not wrong that MFA programs feed the same repetitive, boring work to publishers over and over again, but she is misdiagnosing the problem.
It's that most in the industry at all levels are using something other than taste and judgement in order to decide what is "worthy" of publication or a fully funded grad program acceptance, etc
Many still deny that the political obsessions of the last decade or so really destroyed this industry more than anything else, but that is in fact what has happened.
Everyone is just shrugging their collective shoulders and not understanding why they are bored with reading the same 2nd and 3rd gen immigrant stories over and over again.
what they have in common is making each other feel thrillingly alive when they have sex with each other in exotic resorts around the world with his Spiderman money--hope this helps.