I think it's really poor argument that AGI won't happen because model doesn't understand physical world. That can be trained the same way everything else is.

I think the biggest issue we currently have is with proper memory. But even that is because it's not feasible to post-train an individual model on its experiences at scale. It's not a fundamental architectural limitation.

You need to be able to at least control things that interact with the world to learn from it.

When people move the goal posts for AGI toward a physical state, they are usually doing it so they can continue to raise more funding rounds at a higher valuation. Not saying the author is doing that.