My own personal belief is very close to what you've said. It's a technology that isn't new, but had been assumed to not be as good as compositional models because it would cost a fuck-ton to build and would result in dangerous hallucinations. It turns out that both are still true, but people don't particularly care. I also believe that one of the reasons why ChatGPT has performed so well compared to other LLM initiatives is because there is a huge amount of stolen data that would get OpenAI in a LOT of trouble.

IMO, the real breakthroughs will be in academia. Now that LLM's are popular again, we'll see more research into how they can be better utilised.