I would put it differently.

> can't fit all the "knowledge" out there

know-that is less important than know-how in the longer run. knowledge pertains to the know-how (or theory) than about know-that (facts)

> default behavior of the chimp is to handle that reality - hallucinations and bullshitting

default behavior of bullshitting is not perhaps as much a status or hierarchy thing as it serves a role in communicating human meaning which could be contradictory and not logical in nature. What is logical is that meaning is that which has been organized by a know-how or theory - but then, due to its formalization tends to be stale. Imagine if all of us only made logically correct statements - we'd be robots in a stale world.