Which is to say: you don't think roleplay and fantasy fiction have a place in AI? Because that's pretty clearly what this is and the frame in which it was presented.
Are you one of the people that would have banned D&D back in the 80's? Because to me these arguments feel almost identical.
If a dungeon master learned that one of her players was going through hard times after a divorce, to the point where she "referred Gavalos to a crisis hotline", I would definitely expect her to refuse to roleplay a scenario where his character commits suicide and is resurrected in the arms of a dream woman. Even if it's in a different session, even if he pinky promises that he's feeling better now and it's totally OK. (e: I realized that the source article doesn't actually mention the divorce, but a Guardian article I read on this story did https://www.theguardian.com/technology/2026/mar/04/gemini-ch..., and as far as I can tell the underlying complaint where it was reportedly mentioned is not available anywhere.)
I'm not concerned about D&D in general because I think the vast majority of DMs would be responsible enough not to do that. Doesn't exactly take a psychology expert to understand why you shouldn't.
is it still "roleplaying" when the only human involved doesnt know it is "roleplaying", and actually believes it is real and then kills themselves?
there is a conversation to be had. no one is making the argument that "roleplay and fantasy fiction" should be banned.