Sure, it deceived 27% of the participants at the time, but that was largely because those participants were unaware that such a program could exist.
I would bet good money that if GPT-3.5 could have magically interacted with those 1966 participants, it would have fooled most of them, as it would have been inconceivable for a computer to exhibit such capabilities then.
This raises questions about the relevance of the Turing Test, since simply being aware of a system's capabilities can shift the expectations of what participants anticipate in an AI system.
In 2023, GPT-3.5 fools nobody during a Turing Test, yet it would have passed it with flying color in 1966. If ELIZA had fooled more people and passed the test in 1966, and no longer in 1967, would have we learn something ?
I don't think the Turing Test is teaching us anything about AI system capabilities. On the opposite, it's about the expectations and perception of the human subjects that it tells us something.
It's like the saying that AI is whatever we haven't figured out how to do yet. Once it's well understood, it's no longer considered AI.