Silly and pointless criticism. Why do the semantics of the word intelligence matter?
Also, you need to understand that language evolves over time, and people often use a word to describe a thing that is newly discovered or invented that's similar to the word being used, because it's a helpful way of describing it that the listener will understand better than a longwinded technical description. The purpose of language is to communicate thoughts, not engage in pedantry.
> But things like this slip by a frontier model in the same way AI from a few years ago would generate an image with seven fingers.
Yes, you make an excellent point here that over time, the capabilities of these models to recognize certain categories of problems have increased dramatically. I expect this will continue!
> it's foolish to give them "a company" to run, because they cannot understand when they've made a mistake the way even the least competent human can.
The words of someone who has not spent time with the least competent human, or anything close to it.