Agreed.
I've run a "data science consultancy" in some form or fashion for three years now.
When people say "data science" they mean one of three things:
(1) MLE
(2) Data Management
(3) Data Analysis or Business Intelligence (applications of the same skillsets).
(1) has a lot of ongoing innovation, be it in MLOps, autoML, mapping frontier ML to business cases, etc. Innovation is expensive if the investment strategy is unprincipled. (2) is a critical and essential part of making data a usable asset. Management is expensive if it exists solely as a control process and gatekeeps access and use. (3) is core and will never get away from the adhocs and the standard flows, but the inferences are often dubious or not logically justifiable and requires depth of statistical knowledge (rare) to do well -- and courage to call out BS.
Very few people have the depth to do all three. What I have found is that many businesses hope for capacity in all three, plus some basic SWE, in the hope that they can decrease labor expenses. Not an irrational hope, to be frank, but ultimate the iron law of business holds: you can have it good, fast, or cheap -- pick two and be happy with one.
My core observation (and one I see validated based on client interest and experience) is that this is not new and has happened before -- it is the hype cycle in action. The digitization process (including moving to digital and then moving to Web) had a similar cycle. When you treat "data science" like its a silver bullet it will generally fail to do anything but suck budget. When you embed it with your technology teams and treat it as an iterative add, as useful as devops, etc., you have a better chance for value add.