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It's no more a "good thing" than it is a good thing to have a factory that emits pollutants. Every factory emits pollutants. You can't assess in isolation whether it's a "good thing" or not whether pollution is being emitted, because pollution is forever and always undesired as side effect of factories - so if you're figuring whether it's a good thing or not, it has to be balanced against the economic positives of the factory. We might prefer it if no factory, mill, mine or processing facility ever closed, because such closures have negative consequences for the places they are located. That's as true of domestic competition as international, BTW.
And service industries don't create other forms of pollution or other kinds of externalities that have adverse effects?
One criticism of the recent AI boom is that it's circular: the value creation cycle goes from OpenAI --> Microsoft/Google --> NVIDIA and back again and doesn't involve much else in the economy leading to questions about its long term efficacy and overall robustness.
National economies need balance to weather storms. Too much of a service industry leads to too many dependencies on people's willingness to buy inferior goods (which are the first things cut in a downturn). The same can be said of too much dependence on an export economy as well hence the need for a healthy distribution across the board.
