A bit of sensationalism is sometimes necessary to get the appropriate resources to address a problem. If no one raised an alarm about the Y2K problem, would management have devoted the necessary resources to fixing it? Granted, that particular alarm went way overboard, but that doesn't change the fact that there was a problem that needed attention.
Sometimes a little hype is a good thing. Too much, though, will eventually backfire.
The sky isn't falling. Or is it?