I think you’re so right and this is one of the core points of the discussion for me. The foundation, IMO, should try to stay out of the market as much as it can, picking winners in Defi and to pick which pools have a “substantial, open, market” is bad.
But advising people to put money into a Defi product that then collapses would be absolutely catastrophic for the reputation of the Foundation and might collapse the whole project. Is this a risk really worth taking to increase TVL a little?