I think it shows the limits of hand curation. It's a tiny, human-reviewed slice of the "small web", only allowing a subset of blogs... but if you select the "programming" category and click around for a short while, you get a fair amount of obvious AI slop.
I don't think it's Kagi's fault, but I guess it's depressing in a way. A lot of "small web" bloggers dream of being a part of the "big web", and when they get a cheat button, they have no second thoughts about mashing it.