I personally don’t use it due to the same concerns that you have. It’s creating new details based on a black box approach that we don’t understand.
If the point of the picture is just to be pretty, I don’t see an issue (though I do think it should be noted that it’s an AI-enhanced pic).
BUT if the point is to enhance IDability, then I think it’s a bad move. For instance, what if the AI is trained on different pics that include the most common species? It could fill in details based on that common species and prevent IDing as less common species that aren’t in its training set (don’t know enough about how it works to know how realistic this scenario is).
There are some other thoughts in this thread: https://forum.inaturalist.org/t/photo-sharpening-does-it-help-or-hinder-the-inat-ai/33021