there is absolutely nothing, whatsoever, 'valuable' behind a credit default swap. it is a bet. that is a fact, and its not rocket science, and its not a conspiracy theory, and its not "the ignorant and alarmist" decrying some nefarious boogey man.
You're completely wrong. If you buy a bond from company X, it certainly makes sense to have insurance that if company X goes out of business, you still get your money. And hence, the credit default swap was born. The fact that someone may use the instrument to speculate is a separate issue.
People speculate on everything. It's what you do when you stock up on cans of soup when it's on sale. You speculate that the price is going to go up next week.