I wouldn’t trust it as a sole source of entropy, but it can be one of multiple entropy sources to feed in to an XOF to get secure numbers.
The nice thing about using multiple entropy sources with a secure XOF is that the resulting entropy is at least as strong as the most secure entropy source given to the XOF.
Unfortunately you are not correct, and djb explains it quite well here:
https://blog.cr.yp.to/20140205-entropy.html
TL;DR adding a compromised source of entropy to a pool of already secure sources of entropy can catastrophically compromise the final result.
It's better to source entropy from a smaller number of harder-to-compromise sources. That's why I like the iterated hashes method; the security surface area is both very small and highly likely to be well tested.