All those NFT holders where the NFT resolved to a ipfs.io link in shambles
Finding out NFTs were just links, didn't even embed the asset, was such a moment for me... like either the people pushing this are complete fools or 100% conscious grifters who know it's total bullshit. I suspect it was a mix. Insane. I think a lot of the AI skepticism comes from the fact that the last major New Thing (tm) pushed by this industry was crypto. People are very, very burned by that. That and how badly so…
And of course there's no reason why a NFT has to be used to represent ownership of some kind of digital art - there are other uses for NFTs, such as modeling transferable network permissions or resources.
Ultimately NFTs are a just a specific application of blockchain technology, to represent some kind of resource on a blockchain which could in principle be digital art. If people care about ownership of NFTs representing digital art, that's a social fact about what kinds of art there is market demand for; and whether it matters that the bytes of the digital art are on a blockchain or linked from somewhere else (where they could get taken down or bitrot) is also a social fact.
I actually agree that treating NFTs that merely contain a link to some bytes elsewhere that worked at one point in time is a pretty dumb thing to care about, or have a market for (and the use cases for NFTs where the bytes are actually on-chain are, at best, fairly limited, although I wouldn't say completely nonexistent). And certainly the NFT market of 2021 or so, which had a lot of such NFTs, was driven by a weird social mania and people attempting to grift upon that social mania. This has never bothered me though, because I feel the same way about many markets for physical pieces of art; and ultimately it needs to be possible for people to create markets for things I personally think are dumb or at least don't care about.