It's not that it won't be better at understanding, it's that there's too many possibilities to understand. This is true for humans too, but I can use the output to make money in a particular scenario.

Take even 1 simple example - software applications on a smart watch. How many dimensions of reality are relevant? Maybe I'm a busy person, so I need a personal assistant for my calendar. Maybe my wife needs access too. Maybe I'm a bird watcher and I'd like to track the birds I see. Maybe I'm a bird researcher and those observations need to integrate with my research.... ad nauseum forever.

AI will write all the code, and make all the meaningful decisions, but the backstop of the whole thing has to be some non-virtual reality with a paying user, otherwise there is no value to extract.

I personally only care about the outcome, I don't even really care if I understand how anything else works, or any of the decisions made. My dollars go in, working code comes out to suit me.