Exactly. Game AI is not so much about making AI smart, but more about making it fun.
I do agree with your statement in the vast majority of cases. Ultimately, fun trumps everything else when it comes to games (though what counts as fun is subjective). Even Dark Souls, which many (most) gamers consider difficult, is not difficult because of unbeatable AI. It's full of patterns (indeed, that's how you get better at the game: you recognize and respond correctly to those patterns).