The former is science fiction
Besides, something being depicted in fiction has nothing to do with its plausibility, either for or against. Star Trek depicted teleporters and cell phones. One of those became reality, the other didn't, and it would be easy to see from physics first principles why one could be made and the other could not. Both were science fiction though.
I don't see a strong case for AGI being in the teleporter category rather than the cell phone category, given that natural intelligence already exists as a proof.
That it drowns out actual problems that currently exist
Companies can deploy even these intermediary models to influence you
Today's immediate short-term problems are also important and nobody is denying that. But to some extent, you have to skate where the puck is going to be, not where it is.