Even if we accept as a premise that these models are doing "smart retrieval" and not "reasoning" (neither of which are being defined here, nor do I think we can tell from this tweet even if they were), it doesn't really change the impact.

There are many industries for which the vast majority of work done is closer to what I think you mean by "smart retrieval" than what I think you mean by "reasoning." Adult primary care and pediatrics, finance, law, veterinary medicine, software engineering, etc. At least half, if not upwards of 80% of the work in each of these fields is effectively pattern matching to a known set of protocols. They absolutely deal in novel problems as well, but it's not the majority of their work.

Philosophically it might be interesting to ask what "reasoning" means, and how we can assess if the LLMs are doing it. But, practically, the impacts to society will be felt even if all they are doing is retrieval.