The take away from this article should be that you are vastly overestimating how people understand and interact with technology. The author's experience of ChatGPT is not unique. We have spent decades building technology that is limited but truthful, now we have technology that is unlimited and untruthful. Many people are not equipped to handle that. People are losing their minds. If ChatGPT says "I read your article" they trust it, they do not think, "ah well this model doesn't support browsing the web so ChatGPT must be hallucinating". That's technobabble.
https://futurism.com/openai-investor-chatgpt-mental-health
https://futurism.com/televised-love-declaration-chatgpt
https://futurism.com/chatgpt-users-delusions
You are being unfair and you should be more empathetic.
> Are these the same people that are claiming that AI is all a sham and will have no impact on society?
That is the view of a subset of nerds, not regular people. The author of that piece is a writer not a nerd.