What do you mean, "hallucinates and kills people"? Killing people is the thing the military is using them for; it's not some accidental side effect. It's the "moral choice" the same way a cruise missile is — some person half a world away can lean back in their chair, take a sip of coffee, click a few buttons and end human lives, without ever fully appreciating or caring about what they've done.
The people that actually target and launch these things do think about what they have done. It is the people ordering them to do it that don't. There is a difference, I hope.
I'm sure it was meant as "kills the wrong people."
People are always worried about getting rid of humans in decision-making. Not that humans are perfect, but because we worry that buggy software will be worse.