You're sitting on the Chinese Translator problem, and to some extent the basis of the Turing Test (mostly the translator problem).
https://en.wikipedia.org/wiki/Chinese_room
Knowledge != Intelligence
Regurgitating things you've read is only interpolative. You're only able to reply with things you've seen before, never new things. Intelligence is extrapolative. You're able to generate new ideas or material beyond what has been done before.
So far, the LLM world remains interpolative, even if it reads everything created by others before it.