While I agree, if you think that AI is just a text predictor, you are missing an important point.

Intelligence, can be borne of simple targets, like next token predictor. Predicting the next token with the accuracy it takes to answer some of the questions these models can answer, requires complex "mental" models.

Dismissing it just because its algorithm is next token prediction instead of "strengthen whatever circuit lights up", is missing the forest for the trees.