It's probably not a bubble, but also I don't accept the argument that esports are better. Excluding football and boxing (brain trauma), I haven't seen anyone destroy their careers over really enjoying playing physical sports. I do, however, know plenty of classmates and younger kids who are addicted to games like Dota or League of Legends, both of which are staple esports games.

If I had to choose a sport for my kid to have delusions of being able to go professional, I wouldn't pick esports, despite myself playing many of those games.

The intelligence argument is weak at best. Among other things linked with an increase in intelligence: a good night's rest and regular physical exercise. I will give you the hand eye coordination point though.

Ultimately, esports should be treated as exactly what pro (physical) sports are: entertainment, best in moderation.