To separate the weeds from the worms, I would avoid the term "AI" since it has devolved into a buzzword that's stuck on everything.
I think that if somebody has made a useful open-source project using LLMs, they shouldn't be criticised solely for that reason. If the code produced is ass and isn't reviewed, is hard to contribute to, and there is negligence, that would be a valid criticism. I also despise the use of the privacy nightmare of commercial LLMs (OpenAI, Anthropic, Google, etc.). If are to use LLMs, please use a local model. For you, your project, and your wallet's sake. That's my position on LLMs.
I trust that you are doing your due diligence in keeping your code relatively clean, and hope that your project will succeed! I personally do not use LLMs for my projects, they do not fit my usecase, probably not for most people actually. But I can see the value of having an LLM do menial tasks, as long as the code is properly reviewed and checked.
Generative models belong in the deepest circle in hell. They steal the work of creatives, are awful in the trifecta of morality, ethics, and legality, and are mainly used by scam artists (see: deepfakes) and misinformation campaigns. Nobody should use these, even if it's a local model.
Also, a bit off-topic, but you might have heard of all the "AI has solved (big problem in science)" or "AI proved (big maths thing)" headlines, but note that these are NOT your LLMs, and certainly not any kind of generative model. They use predictive models (sometimes the papers mention "deep learning" too) that are trained on a specific set of data to do a specific task, and most of the actual science and maths is done by humans. These models certainly won't replace scientists or mathematicians, like the Big Tech companies want you to believe, but they are a valuable tool when it comes to doing menial tasks repeatedly. That's what computers are best at, after all!
VR headsets effectively need to run two 4K displays, one for each eye, and you have all the processing for controller tracking too. You also have eye tracking, they're doing the whole foveated streaming thing everybody has been gushing over about (it's really cool tech!). The mobile chip they used is nothing special, it's a Snapdragon 8 Gen 3, a 3 year old smartphone processor (certainly powerful enough to run lighter PC games, but nothing more than that. It's kind of insane that a phone can even do that nowadays!)