It isn't though - it's a way to illustrate Bitcoin's usefulness as a currency as "worse than gold."

I'd put bitcoin's inherently deflationary nature, inability to perform chargebacks, vulnerability to selfish mining, incentivizing the waste of electricity, or a myriad of its other problems far higher on the list than the fact that it has no intrinsic value. Outside the above argument, its lack of intrinsic value isn't that common a criticism, nor is it really relevant.