I am very sympathetic to your point of view, but let me offer another perspective. First off, you can already vibe-write slop papers with AI, even in LaTeX format--tools like Prism are not needed for that. On the other hand, it can really help researchers improve the quality of their papers. I'm someone who collaborates with many students and postdocs. My time is limited and I spend a lot of it on LaTeX drudgery that can and should be automated away, so I'm excited for Prism to save time on writing, proofreading, making TikZ diagrams, grabbing references, etc.

AI generating references seems like a hop away from absolute unverifiable trash.

What the heck is the point of a reference you never read?