Except this has been said since the 2010's and has been proven wrong again and again. Clearly the theory that LLM's can't "extrapolate" is woefully incomplete at best (and most likely simply incorrect). Before the rise of ChatGPT, the onus was on the labs to show it was plausible. At this point, I think the more epistemologically honest position is to put the burden back on the naysayers. At the least, they need to admit they were wrong and give a satisfactory explanation why their conceptual model was unable to account for the tremendous success of LLM's and why their model is still correct going forward. Realistically, progress on the "anti-LLM" side requires a more nuanced conceptual model to be developed carefully outlining and demonstrating the fundamental deficiencies of LLMs (not just deficiencies in current LLMs, but a theory of why further advancements can't solve the deficiencies).
Incidentally, similar conversations were had about ML writ large vs. classical statistics/methods, and now they've more or less completely died down since it's clear who won (I'm not saying classical methods are useless, but rather that it's obvious the naysayers were wrong). I anticipate the same trajectory here. The main difference is that because of the nature of the domain, everyone has an opinion on LLM's while the ML vs. statistics battle was mostly confined within technical/academic spaces.