Your point is that AI is bad at some things, and in some cases misused. Which is of course abundantly true.

But equally it doesn't prove, or even assert, the opposite. A bicycle may be bad at cross-country road trips, but that doesn't make it a bad choice for some other situations.

Hence my earlier comment - I (and I suspect others) are finding it useful for some tasks. That is not to imply it is good at all tasks.

Is it over-hyped? Of course yes. Welcome to IT where every new thing is over-hyped all the time.