"I have always thought I had a good handle on the market. Until recently."
Guess what? That just means that the market has gotten more efficient so that you can't arbitrage it anymore. If you can't make money, that your problem. If the quants made the market so irrational then why aren't you profitable arbitraging it?
All technologies improve the average case at the expense of making the worst case worse. Cars versus walking for example. Average case: get to where you are going faster, worst case: horrible accident. The question is not whether financial innovation introduces systemic risk but whether the benefits out-weigh the costs. The consensus amongst academic is that yes, this is the case.