To be fair, you do have to start with over-collateralized loans before you can get under/no collateral loans with plenty of projects trying to do the latter. That's how lending itself started (https://www.provenir.com/resources/collateral/history-of-len...).

But I agree that if it's always overcollateralized then there is obviously much less utility created (though definitely some - similar to how you can get a loan against your home).

The project mentioned, Goldfinch, has already distributed 4.5M in uncollateralized loans to emerging markets using DeFi rails and liquidity already (https://medium.com/goldfinch-fi/goldfinch-raises-11m-from-an...). My 2c is that it's a sign of what's to come.