You're right that it's as dangerous as it's executing random third-party code on your machine, but the method also has propagated far beyond PoCs and such at this point. All of these projects and many others push that install method: Bun, Deno, rustup, k3s, Docker (if using their helper script), Homebrew, Tailscale...
Frankly, it's not really more insecure than any other installation method. Apt packages and the like generally have the ability to specify pre/post-install scripts, so `sudo dpkg -i ./random.deb` is equivalent to `sudo bash ./random.sh`. Even if they didn't have pre/post-install scripts, they're still writing arbitrary files to arbitrary locations on your disk, so they can trigger execution the next time you boot or log in or whatever.
And at the end of the day, no matter the installation method (even just unpacking a tarball and executing the program directly from that directory), you're going to run their program on your computer, and then the program can do whatever it wants. Maybe you don't run it with sudo, but https://xkcd.com/1200/ seems relevant.