No.  It doesn't stop being peer-to-peer digital cash just because people are using it for other things as well.  Have you never seen a defaced banknote where someone has doodled on it?  Do you run out into the street proclaiming 'the sky is falling' whenever that happens?  Of course not.  There's no need to get so dramatic about this.

People do dumb shit sometimes.  Their behaviour can be inconsiderate, even disruptive.  Welcome to life.

Bitcoin works just fine.  It's not broken.  The only action I feel any compulsion to take is to simply point out that if anyone wastes their money buying this trash, they're a victim and a fool.  Anyone who tries to sell it is amoral and indecent.