It does have some ability to extrapolate to new problems, provided its training corpus has reasonably close coverage. It is not going to be making new scientific discoveries or insights but then neither are most people. With a sufficiently large training set I think these models can achieve human parity for a subset of language generation tasks, and be effectively of human intelligence. They nearly already have.

It doesn’t matter to me if they have “reasoning” capabilities or not if the outcome is the same.

I think we are a long ways off from AGI still.