Even if that’s not the intent of the gift giver, gift cards are always a net negative to the receiver versus cash, and a positive for the shop who gets cash before having to provide a product.
They may be a net negative versus cash, but they're still a net positive versus nothing at all — that is, it's a gift. There are all sorts of inefficiencies we engage in for the pleasure of giving and receiving gifts. Your attitude smacks of ungratefulness.
They're not a net negative if they help the person get over their resistance to spending money on something they want.
My idea of a good gift is something that a person wants, but can't justify buying it to themselves.
You could say that that's worth less to them than the equivalent amount of cash since they didn't make that trade, but it definitely doesn't end up feeling that way as the recipient.
This is definitely my feeling, but e.g. my BIL prefers gift cards (NFL Shop and BWW when in doubt) over all other gifts including cash.
He doesn't like "stuff", but he's frugal and otherwise won't spend straight up cash on himself. Goes straight into savings.
I would never dream of getting him a gift card to help a shop, though. I get him gift cards for things I think he will enjoy but is too disciplined to spend money on for himself otherwise. It's actually a nice way to force myself to really think about him and "give an experience". Or, when I can't, some decent wings and a beer.