I've also used ChatGPT for "self therapy" and found out that it works reasonably well, though I would not recommend it for serious medical or psychiatric issues. I always take the feedback with a grain of salt, however, and usually when you ask such questions you are given the caveat to seek professional help.
If anything, I have positive faith in that ChatGPT or GPTn will be a great tool for therapy in the future.
As for the guy who killed himself, as sad as it is, I seriously doubt that ChatGPT made anything worse. With that said, the incident of course needs closer investigation to find out what advice the guy actually got.
A chat AI would have specific and professionally prepared training to handle people in distress, that's why I think it is in fact better that they talk to the AI rather than some untrained friend or relative.
This is of course just one aspect in how the above application is problematic, however.