I think it depends on your definition of ‘okay thing to do.’ If you’ve never used it and only became aware of it once it failed: it has been functionally a fancy cap with extra parts. You can probably cap it without consequence.

It has been 15+ years since I have drywalled but that looks absolutely fine. Yeah it’s a clear seam but it’s straight and along an edge. Paint and the general noise of decorations and wall hangings will make it disappear just fine.

I hate how this image has so much manicured grass lawn.

Just baking in maintenance into the concept.