> It's safe to say that argument has collapsed utterly. Modern LLMs virtually never collapse into endless babbling loops. Far more importantly, they solve objectively hard problems.

And yet, they still output gibberish. They also still fail to solve objectively easy problems on a regular basis. That is because they are, indeed, still stochastic parrots without any actual understanding of anything or ability to reason about stuff. The argument hasn't collapsed at all.