1. Logo is an illustration. Logotype can be all text, but even then it’s usually highly stylised.
2. One should have a vector of their logo, but it doesn’t really matter unless it’s going to print. Logos shouldn’t be larger than a thumbprint anywhere else.

Obviously AI will output terrible logos, can’t agree more, but some people are selling stuff from their garage and simply have many other priorities before spending on a logo.
For those people, having anything is better than nothing.