Not quite true though - I've occasionally passed a codebase to DeepSeek to have it simplify, and it does a decent job. Can even "code golf" if you ask it.

But the sentiment is true, by default current LLMs produce verbose, overcomplicated code

And if it isn't already false it will be false in 6 months, or 1.5 years on the outside. AI is a moving target, and the oldest people among you might remember a time in the 1750s when it didn't talk to you about code at all.

It can absolutely be used to refactor and reduce code, simply asking "Can this be simplified" in reference to a file or system often results in a nice refactor.

However I wouldn't say refactoring is as hands free as letting AI produce the code in the first place, you need to cherry pick its best ideas and guide it a little bit more.

Today's assistants can refactor, which includes deletions.

It really isn't, and if you think it is, you're holding it wrong.