You sure as hell don't now but you sure did back then. Everybody who had access to a computer could make cool clipart webpages but it doesn't mean they knew anything about making a real website. The same could be said for Photoshop and the people who use filters to make "cool flame art" but have no idea what the filter is actually doing and most of their work looks generic and cant be used for anything other than a silly signature on a forum page.
This actually goes deeper than just blender if you really wanted to get into it. It is the whole concept that the further we advance in technology the more we loose in basic knowledge and skill. I wont bore you with the details here and we can discuss in private or in another thread if you wished... but the point is this is MY opinion of the program.
Your personal option, that a tool is useful or not, is ok. But to tell people, that a certain tool results in bad artists, is just BS. You blame a tool, because it is too easy to use ? You blame it, because it is too inexpensive ? You blame a tool, because some unskilled people try to make art with it ?
Come on, don't blame the tool for being popular and used by hobby/indie artists a lot. I use blender and my art is sub-decent, so, if I get maya my art will suddenly get a professional touch ?
You make a solid point here. Problem with this is that blender is free and easy to use so the COMMON non-professional gets their hands on this program and creates the issue stated above. The OP's question was should it be used for gamedev, and while I believe the tool can be used to do so I hate it as a standard because the common person ( most indie people ) don't know how to create proper models or uv maps.
This really sounds like a personal bad experience taken as a reason for a common rule....
Blender is free, blender is good, blender is used in many professional projects and blender users are able to create stunning art, so , yes it is an good option for gamedev on low-budget projects.