When people object to the coining of a term, what they're usually trying to say is that it just fails to refer to any coherent thing or group of things for which you could develop an alternate term.
"AI psychosis" tries to group together the phenomenon where people fall in love with an LLM-generated character, the phenomenon where people spend too much time talking philosophy with LLMs and stop expressing coherent thoughts, and the phenomenon where tech evangelists say "AI can do all of these 5 million things" when actually it can't do all of them. But what if these are all different phenomena with different causes and solutions?