> predict the most objectively correct next word in a sequence of words
Currently all LLMs are only determining the most probable next token, but this means they are not aware of the probability of the entire sequence of tokens they are emitting. That is, they can only build sentences by picking the most probable next word, but can never choose the most probable sentence. In practice, there are a great many very likely sentences that are composed of a fairly unlikely words. When we use the output of an LLM we're thinking it of a sequence sampled from the set of all possible sequences, but that's not really what we're getting (at least as far as probability is concerned).
There are approaches to address this: you can do multinomial sampling instead of greedy so that are casting a slightly large net or you can do beam search where your once again trying to search a broader set of possible sentences choosing by the most probable sequence. But all of these are fairly limited.
Which gets to your first remark:
> Now explain what humans are doing and why it is different.
There's very little we really know about how humans reason, but we are certainly building linguistic expressions at with a more abstract form of composition. This comment for example was planned out in parts, not even sequentially, and then reworked to the whole thing makes some sense. But at the very least humans are clearly reasoning at the level of entire sequences as their probability rather than individual tokens at a time.
The word "planning" almost tautologically implies thinking ahead of the next step. When humans write HN comments or code they're clearly planning rather than just thinking of the next most likely word over and over again with some noise to make it sound more interesting. No matter how powerful and sophisticated the mathematical models driving the core of LLMs are, we're fundamentally limited by the methods we use to sample from them.