I think this is sort of less bad/weird now, at least. You get a tokenizer instead, which is still empty, but you're prompted to "Type a repository name..." and the UI isn't this odd empty select thing anymore.

Maybe in a totally ideal world we'd add some additional hinting here to guide you toward Diffusion, but I think the hint text describing what the control is for is probably good enough given that users haven't actually bumped into this as far as I know.