I really don't understand why people think it's some insurmountable wall. People do hallucinate in the same way llm-s do. If you talk to a baby that just acquired language it spews all sorts of nonsense, but also some sensible things.
So far we made a baby, granted, with huge vocabulary and shallow knowledge of many things. But now we need to raise it. The same way we raise humans. With better training. By exposing it to new knowlege but also reducing input of garbage. By making it hear the words that have more and more complex concepts behind them and telling it when it generates outputs that are erroneous.
It's a monumental task, but we are not raising an only child. We need to figure out how to make children cooperate and teach from each other.
Synthetic data will be a huge part of this process. Gold and shovels ... AI might be search for gold, but creating variety of synthetic data from deep reasoning will be shovels factory.
It's weird that people suddenly expect 4 year old to accurately reproduce encyclopedia just because it can talk now.