"And yet when I read the comments, I see this sort of calm acceptance that of course this technology is going to take over search. Why is everyone so confident? The performance of these models is simultaneously jaw-dropping and absurd. With no proposed solutions to the problems that they fundamentally face, why this level of belief that their ascendance is inevitable?"

Because you forgot the nr 1 rule of fight club. It doesn't matter if it has unsolvable problems. The only thing that matters is if it has the momentum and the support to create a bubble and drive economic growth.

You're welcome.