They had a bug in their model that they fixed within days is evidence they are "untrustworthy"?

Why is that even a problem? If no images are released on the internet (and users consume them privately), no one is harmed in the process.

Blocking AI from generating sexualized images because people could publish deepfakes is no different than banning alcohol because of drunk driving.

Tools are neutral. Blame the people who misuse the tools and hurt others.