So, right of the bat, you are warning us that you are going to apply the " no true Sscottman" fallacy, and that we should brace ourselves.

Yes, models posses intelligence, but it is not a true one.

Then you claim that models do not posses world-building capabilities. But this is simply not true. Even ignoring the whole subgenre of scientific papers on exactly that subject, it is not that hard to build some hypothetical scenarios, big or small, and then witness the ease with which models do navigate those worlds.