The title of the OP's post wasn't "I need a way to make some quick extra cash". Most people I know work on side projects more for learning and career development. I gave an answer based on that prior belief.
Sometimes, hype exists because things are genuinely cool. I feel this is the case for VR and smart tools. On the other hand, I'd be inclined to agree with you about chat bots, for instance.
The OP's opening sentence asked for a project to make $500-$1000, not ride a hype wave.