It's uncool because it's an inconvenient truth, and there are people that don't want other people to know certain facts.

Confabulation is a better term

2 things. 1, hallucination is a sensory perception of something. LLMs don't have senses. The term doesn't make sense when confabulation is literally lying right there. 2, ai bros really like their ai, and run interference when people find flaws in it. This includes derailing conversations with nit picking terminology. Yes i'm aware of the irony in my post.

Because it’s no longer a problem if you use frontier models.