I don't see people giving up on it anytime soon. I do think eventually it will serve some kind of purpose or be refined enough to be reliable in some way. I think far too many people jumped into this stuff with both feet thinking the future is now and skipped over creating shortcuts for tasks in an effort to take shortcuts for profits.
And there are plenty of people who are willing to use and abuse this tech for nefarious purposes. Deep fakes, fraud, etc. they definitely won't give it up as they don't care about the effects on the rest of us
AI is basically a slippery slope in all directions surrounded by pitfalls it misuse and abuse. People are too quick to trust it. I think a syllabus that includes a lesson warning people as early as possible about the dangers/risks is a good idea that is still relevant to the course. An ethics class for the deep dive is a fine idea, but I don't think a chapter on analyzing this stuff in an Intro course is that out of bounds. Intro should at least address it, or at the very least not considered a waste of time.