In addition to generating whole images, you can also use inpainting (e.g. drawing mspaint-tier latex clothing on top of existing pony images) to avoid producing weird anatomy. Pic related is full of errors (notably the baked-in magic aura and loss of body definition due to not masking enough) but is a decent example of what you can do with inpainting (AI can definitely handle far more complex poses than demonstrated here and should automatically add latex ripples/creases to joints etc.).
P.S: Just to clarify since estories always seems to upload his work anonymously, this isnt him uploading this. I only found this edit on twibooru and decided to reupload it here.