The issue is, as an industry and society, we somehow bought the "safety" and "harm" charade a little bit too much, and somehow think it's a reasonable argument instead of being completely insane.
We can both admit that the tools can and will be used for bad purposes, and come to the conclusion that their benefits outweigh the negatives. We would not be doing any favors to our own arguments by pretending otherwise.
The hoax was pretty quickly debunked, as the attempt was pretty crude. The images were full of artifacts and the image sizes were all 512x512 squares (the default image size for Stable Diffusion) with no attempt made to crop it to more common aspect ratios. So in terms of harm "done" I guess it was pretty minor, but I'm still leaving it out here since it made big enough of a commotion to make it to nationwide news stories.