I don't disagree with you, there are certainly some major hurdles to overcome in many areas. That's why I caveated my comment to say it's overrated for many purposes; however, there are certain use cases where current AI is truly an amazing tool.

Regardless, OpenAI has made it clear that they never intended to relegate themselves purely to specific use cases for AI, they desire AGI. I would assume this is Microsoft's desire, too, but I'm sure they'd be okay making numerous specialized models for each of their products. But yes, unless they can overcome all of those issues as you point out, its generalized usefulness will be severely stunted. Whether they can accomplish this in the short term (<10 years), I guess time will tell.