I think I misinterpreted your comment as not understanding the AI effect, but actually you're just summarizing it kind of concisely and sarcastically?

LLMs are one of the first technologies that makes me think the term "AI effect" needs to be updated to "AGI effect". The effect is still there, but it's undeniable that LLMs are capable of things that seem impossible with classical CS methods, so they get to retain the designation of AI.