They're the new WYSIWYG/low-code. Everyone that doesn't fully understand the problem space thinks they're some ultimate solution that is going to revolutionise everything. People that do are responding with a resounding 'meh'.
Stable Diffusion is a great example. Something that can generate consistent game assets would be an absolute game changer for the entire game industry and open up a new wave of high tech indie game development, but despite every "oh wow" demo hitting the front page of HN, we've had the tech for a couple of years now and the only thing that's come out of it is some janky half solutions (3D meshes from pictures that are unworkable in real games, still no way to generate assets in consistent styles without a huge amount of complex tinkering) and a bunch of fucking hentai lol.