Well, that and it turns out that for a LOT of people "it talks like me" creates an inescapable impression that "It is thinking, and it's thinking like me". Issues such as the absolutely hysterical power and water demands, the need for billions worth of GPU's... these are ignored or minimized.
Then again we already have a model for this fervor, Cryptocurrency and "The Blockchain" creates a similar kind of money-fueled hysteria. People here would laugh in your face if you suggested that soon everything imaginable wouldn't simply run "on the chain". It was "obvious" that "fiat" was on the way out, that only crypto represented true freedom.
tl;dr The line between the hucksters and their victims really blurs when social media is involved, and hovering around all of this are a smaller group of True Believers who really think they're building God.
That really does seem to be true - even intelligent, educated people who one might expect to know better will fall for it (Blake Lemoine, famously). I suspect that childhood exposure to ELIZA followed by teenage experimentation with markov chains and syntax tree generators have largely immunized me against this illusion.
Of course the folks raising billions of dollars for AI startups have a vested interest in falling for it as hard as possible, or at least appearing to, and persuading everyone else to follow along.
And now we have AI death cults.
To some extent ChatGPT was a magic trick; it really kind of looks like it’s talking to you at first glance. On repeated exposure the cracks start to show.
So far as I have seen, people have run straight from "wow, these language models are more useful than we expected and there are probably lots more applications waiting for us" to "the AI problem is solved and the apocalypse is around the corner" with no explanation for how, in practical terms, that is actually supposed to happen.
It seems far more likely to me that the advances will pause, the gains will be consolidated, time will pass, and future breakthroughs will be required.