I guess what I'm really asking, what would you expect to observe to make it not illusory?
The illusion happens when, clearly, the alleged reasoning behind how such a system comes to be is based on prior knowledge of the system as a whole. Meaning, its construction/source was within the training data.
My opinion is it isn't binary, rather it's a scale. Your example is a point on the scale higher than what it is now.
But perhaps that's too liberal a definition of "reasoning" , no idea.
We seem to move the goalposts on what constitutes human level intelligence as we discover the various capabilities exhibited in the animal kingdom. I wonder if it is/will be the same with AI
A desert mirage in the distance is an illusion; to the observer, it's indistinguishable from an oasis. You can only tell that it's a mirage by investigating how the appearance was created (e.g. by dragging your thirsty ass through the sand, to the place where the oasis appeared to be).
Yeah, I think you've got a good example that improves the analogy.
His output was indeed word-salad, but he was eloquent. His bullshit wasn't fallacious reasoning; it didn't even have the appearance of reasoning at all. He was just stringing together words and concepts that sound plausible. It was funny, because his audience knew (and were supposed to know) that it was nonsense.
LLMs are the same, except they're supposed to pretend that it isn't nonsense.