Yeah it's pretty dumb most of the time. But I know that, and I don't use code from it without carefully checking it out and modifying it. But it's still a huge help. Just the time saved writing tests alone pays for it. And I've had a few spooky experiences where it feels like it knows the bug fix before I do. Think of it as a smarter auto-complete.
The technology has a long way to go, but I completely disagree with Kite here. It's already good enough to pay for. If my company didn't pay for it, I would. I already pay for JetBrains, and it costs more than Copilot. I would give up JetBrains before I give up Copilot.
My guess here is Kite positioned themselves as a free alternative to Copilot and then couldn't monetize. There very likely is more to it though.