yes, this kind of functional intelligence seems distinct from an actual living entity, which is the thing that uses subordinate functions to pursue goals and has some interior state, motivations and some sort of architecture. To reduce intelligence to tokens predicting more tokens is kind of like saying f(x), just solve for intelligence. When prediction itself is only partially what intelligent systems are about.
Agent is a very important word because it's accurate ("a means or instrument by which a guiding intelligence achieves a result") And it's the latter I think we ought to be after when talking about 'general ai'.