All learning is bound by kNN, including, I would argue, human intelligence. When we compare and contrast things, be it words, objects, or images, the very best we can do is to compare those “units” to all other examples that we have ever observed.
There is no such thing as generalising beyond kNN. The real magic in generalising is not how many nearest neighbours you are able to compare against, the magic is in _which_ qualities you use to determine the kNN. Another way to state this is: intelligence is in the distance metric/embedding/compression, not the ability to process all examples.
When we say that humans are able to generalise, what we really mean is that we are able to compare and contrast specific subsets of qualities for a given object against all other things objects we have knowledge for. The way we choose and weight those specific qualities is what results in our “intelligence”.
So when we say that NN == kNN, I think this is actually a really impressive achievement for neural nets. Neural networks are able to produce kNN level results with orders of magnitude lower compute. Humans too, are able to do this, and if we’re being very thorough, we sometimes fall back to kNN-like processes