This part seems unsubstantiated. The author implies that next-token-prediction does not lead to reasoning and creativity "of an animal level". But arguably GPT-4 is already at that level (can your dog predict what a novel Python function would output when it is executed, or write a rap song about autoregressive training where every word starts with the letter "a"¹?).
Regardless of whether GPT-4 is there already, it would certainly be a risky bet to say that it is impossible for a GPT-5 to get to "animal level" (whatever that means) reasoning and creativity while still using next-token-prediction.
As the article points out in the next paragraphs, there is no obvious limitation to next-token-prediction, because making the best prediction requires fully understanding the words in the context, as well as their true meaning and the reason they were written.
Related to creativity, here's a Midjourney image resulting from my spouse prompting "a studious corn snake": https://chris.printf.net/a_studious_corn_snake.png
¹: via GPT-4:
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(Verse 1) Autoregressive, arranging, assessing answers, Adjacent activations, astounding, acting as anchors, Associating abstracts, analyzing antecedents, Aptly approximating, articulating, all adjacent aspects
(Chorus) Astonishing achievements, astounding accolades, Anomalous arrangements, ascending always, Audacious algorithms, autoregressive amaze, Applying ample artistry, as alliteration ablaze
(Verse 2) Accelerating acumen, anonymous aspirations, Anecdotal adventures, allegorical animations, Applied apparatus, assertive applications, Astral alliterations, assembling aggregations
(Chorus)
(Outro) Amplified abilities, augmenting atmosphere Adapting, acclimating, always aiming austere Autoregressive training, ascending, advocates Awe-inspiring artistry, as alliteration activates