Yes, storage capacity and compute have made major leaps, but it's still only lossily compressing a semantic space. It won't generate things from thin air, and it's certainly not sentient, no matter how far you scale it up.
That said, it may be a useful tool in some cases, and we've also seen its numerous limitations, only some of which may be alleviated in the future.
As always, the problem is not artificial intelligence, but natural stupidity.