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I can elaborate on why I think it's a bad idea (starting with the opt-out v. opt-in aspect). But it boils down to the fact that so far, all improvements I have seen thanks to the AI tools are papers that are smoother, but also less informative. Fewer typos and grammatical mistakes, but less content.

No matter how you think about this, I do not think Overleaf is to blame. They are not enabling a new capability. They making an existing capability (AI text polishing), that was heavily used already, easier to use. If they would not do it, an competitor might emerge that does.

I can blame the game, if not the players. Also, that I was opted in by default instead of given the option is a huge conceptual difference.

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Yep, let's blame the game - and I have mixed feelings about this myself. Regarding Overleaf: They are a company providing a text editor, not the guardians of the ivory tower. They provide the services they think most their users want (including opt-in vs opt-out).