Vending Machines used to be called robots. Then they stopped seeming magic.
Like everything else that was ever called AI then realized, the goalposts move to exclude it.
Yeah, the shoe fits.
It's become increasingly clear that they're two different concepts so we need two different names.
And nobody involved with currently commercialized projects is going to stop using the term AI, so a new term was needed. AGI seems as good as any other -- do you object?
I see no reason we'll need a third term as you suggest, unless we come to a new gigantic breakthrough that is miles beyond our current conception of AI, but is not yet AGI.
Here's a suggestion; stop calling LLMs "AI". Yes, I know; the shareholders will hate it. But then, you're not building towards any expectation of intelligent behavior. The fact that we have to qualify the existence of intelligence with a different acronym says it all; people are disappointed with what we have. AI simply isn't enough, we need it to be generalized before we get reliable results!
So... yeah, I do object. Users won't object because they're hungry for a better experience, and developers won't because they need every excuse they can get to charge recurring service revenue. Suspicious onlookers like me and the parent are the only ones who end up questioning the whole thing.
Once I heard Altman suggest "with AI" should be replaced with "using a computer".