I really do wonder how many in the field of AI take as philosophically unsophisticated of an idea like intelligent computers seriously and see it as an obvious and uncontroversial possibility. What Hofstadter is dancing around is that intelligence requires semantics and semantics is exactly what computers, by definition, lack. Knowledge is semantic in nature and thus computers cannot, strictly speaking, know anything. They cannot reason because, again, reason requires semantics. Now, we are able to model and then formalize some domains of reality under some aspect well enough such that computers can behave in very useful ways, but no matter how sophisticated such programming gets, it cannot somehow magically cross over into semantics. The notion is patently absurd. So to say that AI is, literally, far from being intelligent is like saying the color red is far from being a strawberry. No amount of red will ever amount to a strawberry.
P.S. I was reminded of this post about Sphex wasps and intelligence, with mention of Dennett and Hofstadter: http://edwardfeser.blogspot.com/2013/12/da-ya-think-im-sphex...