> When Deep Blue won at chess, people didn't revise their estimates of AI capabilities upwards. They revised their estimates of how much intelligence is required to play chess at world level downwards, by a lot. Surely playing chess must have never required any intelligence in the first place!

You are wrong, many did temporarily revise their estimates of AI capabilities upwards, but then 10 years later they realized they were wrong and adjusted chess downward as you say.

We have seen that pattern over and over.