You can't just reject reality.
2 + 2 = 4
It's already happening.
It's already happened.
AMM mathematically provides more liquidity to the market on a dollar for dollar ratio.
People are using them.
These are facts.
there is no guarantee that the incentives cover your losses
Literally no one is saying otherwise.
Risk: meet reward.
Providing liquidity is far less risky than trading.