Like yes to some extent there is a mild amount of generalization in that it is not literally regurgitating the internet and it to some extent mixes text really well but I don't think that's obviously the full on generalization of understanding that humans have.
These models obviously are more sample efficient at learning relationships than a literal lookup table but like I've already said: my example was obviously extreme for the purposes of illustration that sample efficiency does seem to matter. If you used 100^2 - 1 samples, I'm still not confident you truly understand the concept. However, if you use 5 samples: I'm pretty sure you've generalized so I was hoping to illustrate a gradient.
I want to reemphasize another portion of my comment: it really does seem that when you step outside of the domain of the internet, the error rates rise dramatically especially when there is completely no analogous situation. Furthermore, the further from the internet samples, the seemingly more likely the error which should not occur if it understood these concepts for the purposes of generalization. Do you have links to examples you'd be willing to discuss?
Many examples I see are directly one of the top results on Google. The more impressive ones mix multiple results with some coherency. Sometimes people ask for something novel but there's a weirdly close parallel on the internet.
For example, people thought Sumplete was a new game but it turned out to be derivative: https://www.neowin.net/news/chatgpt-made-a-browser-puzzle-ga...
I think this isn't as impressive at least towards generalization. It seems to stitch concepts pretty haphazardly like in the novel language above that doesn't seem to respect the description (after all, why use brackets in a supposedly indentation based language). However, many languages do use brackets. It seems to suggest it correlates probable answers rather than reasons.