If you change your perspective on language to mean any arbitrary capture of useful information (such that it can be used in the future), then you can see that the boundary between words and the world is not the heart of the issue. For example, your perception of the world works in a similar manner in that your sensory organs cannot comprehend the world, almost like your sensory organs interpret the world using their own language. Or maybe if that example is not very intuitive, then how about imagining an alien species that has sensory organs that act on linguistic structures. In some way, the aliens will figure out a coherent structure of their own, even though they cannot "experience" the world through senses like ours. What "intelligence" is doesn't seem to be bound by how "close" someone is to reality, and "close" might not even be the right word, since different perceptions can have different capabilities. I think the tricky part about "intelligence" is that there is always some "meaning" captured, it is just alien to those who do not share the same interpretive capacity. A cat could extract meaningful information from words on a paper, but certainly not in the same way we do.
Now if we want to make an AI that acts and thinks like us, then understanding our own machinery (the relationship between the world and language) is certainly important. But I think the bitter lesson rears its head here, and I believe that something that is truly worthy of being called AGI will be able to thrive given any set of arbitrary senses, even linguistic ones. In other words, I do not think embodiment will naturally lead to AGI, rather that embodiment is a necessity if we want make AI in our image. And making an AI in our image is the fastest way to get an AI to do useful work for us.