You are right: Dropbox's behavior with regard to symlinks is fundamentally wrong.
It is kinda lame that other services, e.g. Google Drive, just skip symlinks, but that isn't as dangerous. The hierarchical structure of a directory tree is often effectively part of an application's data, and Dropbox silently corrupts that data. This can cause crashes, or multiple conflicting copies of not-easily-merged data to be strewn about in different places.
It's also hard to initially notice how broken it is, since symlinks work on the first machine where Dropbox encounters them, but then on all subsequent client devices that Dropbox sees are replaced with some version of whatever data they point to.
It is kinda lame that other services, e.g. Google Drive, just skip symlinks, but that isn't as dangerous. The hierarchical structure of a directory tree is often effectively part of an application's data, and Dropbox silently corrupts that data. This can cause crashes, or multiple conflicting copies of not-easily-merged data to be strewn about in different places.
It's also hard to initially notice how broken it is, since symlinks work on the first machine where Dropbox encounters them, but then on all subsequent client devices that Dropbox sees are replaced with some version of whatever data they point to.