The act of distinguishing between human intelligence and LLMs is what allows us to figure out how to make it better. There are still some deep limitations, and to ignore them is a mistake. That doesn't take away from how crazy good they are.
But I never forget that it's a simulation of intelligence. I use it for the things it's trained on (generating code) and I don't expect the model to be good at writing poetry, or fiction. Nor do I expect it to have any actual understanding of the things it is actually trained on. Modern models are pretty good at simulating understanding, but even so they will still produce things that a human being would immediately know is wrong, e.g. image-generation models producing hands with the wrong number of fingers, or a person with three arms, or whatever. Those happen less and less often as models have been better trained (and I bet that verification steps are happening behind the scenes to catch and discard some of the classic mistakes), but they still happen.
It's the dancing bear, except this bear is actually managing some really spectacular dance moves. Some of the time. Other times it falls flat on its face. But it's really, really impressive that the bear is actually managing to dance so well.