As soon as we started unironically calling LLMs "AI" we went down the hype path. That has plenty of downsides, like stressing out the entire world and attracting cryptocurrency bros, but also the major upside massive of funding/acceleration. So far, all we have is more software running on computers. It's powerful, and it's amazing, but it's not magic. Calling it "AI" was possibly a net-negative but we don't know yet.
One of the lesser, but still underdiscussed ramifications is that I think it has limited the public's ability to comprehend the Yann LeCunn argument, that genuine AI is likely possible but that LLMs and transformers are a dead end and we need to explore different modalities