Sure, but the basic value proposition of AI is that you don't have to care. These issues could be overcome, but they aren't, because the whole way the technology is promoted and sold guides the user away from caring.
I suspect that what drives the compulsive lying and exaggeration is that they know what LLMs can actually do is not worth the development and operating costs (at least for now), so, like Bernie Madoff, they pretend that they're more capable than they are in the hopes that the next round of investment will somehow bridge the gap and let them actually produce what they've been falsely promising their investors they can do, and make the whole thing worthwhile.