Your first critique has a massive hole in it, because it assumes that every person whose job is replaced by "AI" is actually going to be done as well by the "AI" as it was by the human.

To the extent that it's even true that this is going to happen, that is laughably false.

Yes; LLMs can answer some questions well (but unreliably) and with the right setups, can be rigged to perform some tasks well (but unreliably).

There is no way they are ready to take over a single full-time job. If any employer tried, the number of errors in the performance of that job would jump by a huge amount, because LLMs are not reliable and cannot be made so.