No, everyone is crazy and not thinking at all right now. Vector databases are a great example of cargo culting, as are many other approaches in AI and ML.
I increasingly work with the embedding vectors, but I keep them in memory or in a regular database column. By keeping them in a regular database you can tag ordinary records with locations within embedding spaces, and you gain all kinds of helpful clustering and joining capabilities through embeddings tuned to specific tasks. You just loop over the hydrated records. You get all the same benefits and more.
His approach amounts to disabling safety features.