I played with technologies like Stable Diffusion for a while. They are fun to use for a while, there are too many unsolved issues such as coherent style, stable style transfer for videos an despite my best effort every second image will have a human character with two heads or four arms.
I feel like ChatGPT is similar. It makes for a fun parlor trick, but when it gets things wrong, it gets them very wrong and it doesn't let you easily know that it's wrong. People are already plugging ChatGPT to anything from code to managing investments, it's just a matter of time until it crashes and burns. We are just waiting for the first ChatGPT version of "autonomous car rams pedestrian".
As for OpenAI, it's in their best interest for people to be scared and governments to propose regulations. It further solidifies ChatGPT as a force to be reckoned with, even if it isn't. They're trying to sell it as AGI even though it isn't anywhere near, but actions like this are helping to maintain that image.