I don’t use any LLM features of Kagi, and it’s not hindered in any way.
IMO, as they improve their (own/in-house) indexes, I think they’ll be able to build more features on top of standard Kagi search.
We have a an AI integration philosophy that we have been following since day one.
https://help.kagi.com/kagi/why-kagi/ai-philosophy.html
The primary guideline of that philosophy is that any AI feature is opt-in and on-demand rather than being pushed down the user. So to characterize our efforts as you did, can at best be described as doing disservice to reality. Why the need for that?
The problem is that Google ruined its reputation by showing completely inaccurate results when it started displaying AI-generated results.