> this exponential line of thinking
It's a clever argument because if you question it, you're reminded of the entire history of technological development which is, guess what, exponential.
You're sometimes also dismissed as not understanding the concept of exponentials. This again is clever, as it's baked into the definition that if you don't see it happening, or can't imagine it happening, well that's precisely a tell you're living through an exponential!
All the reasons you might give can be countered with, essentially, "that problem that seems clear today will go away sooner than you can imagine and when it does you'll be on the back foot, so you'd better just assume it will go away and project/plan accordingly".
The trick is entirely that one cannot possibly deny the general power of exponential progress across all of technology, it's almost a law, but it doesn't work in the other direction - no particular local technology is owed exponential growth because of this general pattern. Sometimes things just cap out at merely 'useful' and don't improve much further, no matter how much you want to believe they won't, no matter how steep the progress curve (or, indeed, line) has been up to that point.
To this point the narrative of what these tools can do over these last 3 or 4 years has always been way ahead of the reality. Everyone who works with the tools knows this.
Not everyone wants it to be true, so some will not acknowledge it and will just keep pushing this year-ahead projection as ground truth today. Many (not all) of those people aren't builders, so they don't have to deal with present reality jarring up against this projection of what ought to be possible, they're safe just talking about what should hypothetically be possible and making plans around that that won't be executed for months to years anyway. This keeps the flywheel going, and in fairness, some of the reality has actually caught up in certain ways, so some of those plans will have to some degree worked out which spins the flywheel faster still.
In the end though I just keep thinking: it's been 4 years (as referenced in the post). A lot has happened, the tools are very cool and very useful for certain things. But when I put my head up and look around in the world, even just the software world, nothing's really changed in terms of actual outcomes, in terms of new things appearing or being built that didn't exist 4 years ago. Certainly nothing feels instinctively like it's improved much, subjectively.
Maybe this is what it feels like to be in the knee of a curve of an exponential, but it seems equally reasonable this is just a breakthrough that's kind of improving at a clip you'd expect it to for all the investment put in, but fundamentally is just a new tool that needs to be slowly commercialised in an economically rational way, as we gear up for the next breakthrough which may or may not be related. Who says it must just keep improving forever? This argument never made much sense to me.