Not only does this mean that you could end up with a compromised system, but it also means that there's no artefact of what caused it left on disk.
I agree with your point that running third party software is always a risk, the problem here being that you can think you've done your due diligence by reading the curl output first and then doing curl|bash, but in actuality this is not necessarily the case which is what makes curl|bash such an insidious bad habit.
https://www.idontplaydarts.com/2016/04/detecting-curl-pipe-b...
Package managers have decades of work put into them. Not just the installation and verification aspects, but all of the maintainence bureaucracy required so that there is accountability and verification. As much as developers might like to think that we know more about our users than anyone else, we don't. And there's essentially no verification or reason to believe that an upstream curl|sh will work on a given distribution. People who package software are usually part of the distro community they're packaging for, and are much better at knowing how software should be packaged for that community.
However, not sure about the the implied conclusions (or my perceptions of them). I believe, the correct answer is that adding untrusted repositories is also dangerous and should be done with caution.
And, yes, when I add external repos, I consider a quick background check on who runs it, how popular (=trusted by others) it is, and depending on my conclusions about the trustworthiness, do audit the package contents or perform a test run in a VM. Others' mileage may vary.
Network: ... rm -fr / <HUP>
Bye bye everything!
The only mistake I see in this case is doing this over plain HTTP. Let's Encrypt is free and there is no excuse for not enforcing HTTPS for this.