You could have said the same of linux - that it extinguished proprietary OSs at least for server usecases.
It's so good that the US government is rushing to ban all Chinese models as fast as they can.
The interest around K3 is a lot more defensible because we actually know what the architecture looks like, how much effort it takes to get it to run, and what kinds of results it gets on cyber evaluations. And no, it's nowhere near "dangerous" enough to where people might honestly want to ban it for real safety reasons. It does a good enough job at fixing cyber issues, but that's hardly a safety concern.