I agree about the trend to stuff AI in everything. This one feels legitimately useful though? One hot key away from asking how to write a command in plain english is kinda nice.
Honestly iTerm has always been loaded with features that of dubious usefulness. They all tend to be useful to someone though. This is just another one on the list.
I think the biggest failure here was the way it was communicated. Extremely ambiguous about WHAT it actually does and any privacy concerns.