>> 1) Next token prediction can itself be argued to be a task that requires reasoning
That is wishful thinking popularised by Ilya Sutskever and Greg Brockman of OpenAI to "explain" why LLMs are a different class of system than smaller language models or other predictive models.
I'm sorry to say that (John Mearsheimer voice) that's simply not a serious argument. Take a multivariate regression model that predicts blood pressure from demographic data (age, sex, weight, etc). You can train a pretty accurate model for that kind of task if you have enough data (a few thousand data points). Does that model need to "reason" about human behaviour in order to be good at predicting BP? Nope. All it needs is a lot of data. That's how statistics works. So why is it different for a predictive model of BP and different for a next-token prediction model? The only answer seems to be "because language is magickal and special". But without any attempt to explain why, in terms of sequence prediction, language is special. Unless the er reasoning is that humans can produce language, humans can reason, LLMs can produce language, therefore LLMs can reason; which obviously doesn't follow.
But I have to guess here because neither Sutskever nor Brockman have ever tried to explain why next token prediction needs reasoning (or, more precisely, "understanding", the term they have used).