I'd argue that they're still intuitively trying to keep intelligence in the gaps, as humans like to do. Or maybe they're mad they bet on the wrong horse... or maybe both. Hard to say.
I'm totally onboard with that as a plausible argument, but I think the architectural limitations with respect to consciousness are very deliberate rather than some lack of technology. We've invested huge sums of money and human effort to create tools with explicit goals that are completely at odds with consciousness or AGI. If we had invested similarly with the clear goal of creating something with agency, self-determination, neuroplasticity, etc. instead of controllability, repeatability, reliability, I think we would be there already.
And... I remember (all of six years ago) back when language was considered the pinnacle of the human mind. Sure, animals might be smart, but they don't have language!
The moment LLMs appeared it suddenly took a back seat to physical navigation and child rearing.
Feels like more gap seeking to me. But time will tell.
And now we are finding that cetaceans have language more complex than out own :)
Agreed with you on all points!