It's still just information retrieval. You're just dividing it into internal information (the compressed representation of the training data) and external information (web search, API calls to systems, etc). There is a lot of hidden knowledge embedded in language and LLMs do a good job of teasing it out that resembles reasoning/thinking but really isn't.
Given the fact that "thinking" still hasn't been defined rigourously, I don't understand how people are so confident in claiming they don't think.
* Humans that make mistakes are still considered to be reasoning.
* Deterministic algorithms have limitations, like Goedel incompleteness, which humans seem able to overcome, so presumably, we expect reasoning to also be able to overcome such challenges.
2) Yes, to reason does imply to be infallible. The deterministic algorithms we follow are usually flawed.
3) I can't speak much to that, but I speculate that if "AI" can do reasoning, it would be a much more complex construct that uses LLMs (among other tools) as tools and variables like we do.
Isn't that still "not thinking"?
LLM's be like "The dumb humans can't even see the dots"[1]
[1]https://compote.slate.com/images/bdbaa19e-2c8f-435e-95ca-a93...
How about non-determinism (i.e. hallucinations)? Ask a human ANY question 3 times and they will give you the same answer, every time, unless you prod them or rephrase the question. Sure the answer might be wrong 3 times, but at least you have consistency. Then again, maybe that's a disadvantage for humans!