First, you should distinguish theoretical physics from fundamental physics. For example, there is a theory of superconductivity, but it doesn’t apply to high temperature superconductors, so there is room for more theories. The high status of fundamental physics is probably bad for theoretical physics, drawing people away from a huge range of open problems, but this isn’t the fault of string theory. String theory compounded this by producing the illusion of opportunity, but it is hard to say how much is each problem.
Second, even if string theory is wrong, it can be useful. AdS is obviously wrong, but its ease of study can be useful. People go back and forth between general arguments and specific arguments. General arguments about what any theory of quantum gravity must look like are good. Checking that they can be made rigorous in specific theories like string theory is also good. Having more specific theories would be better.
This is pure first-principles reasoning without a single glance at how humans actually behave, eg, how they assign a reputation for honesty.