Insofar as ARC is being used as a benchmark for code synthesis it might be somewhat successful but it doesn't seem like people are using code synthesis to solve the puzzles so it's not really clear how much success on ARC is going to advance the state of the art in AI and code synthesis according to a logical specification.
I don't see what this has to do with anything. Intelligence is about learning patterns and generalizing them into algorithmic understanding, where appropriate. The number of dimensions latent in the dataset is ultimately irrelevant. Humans live in a 4D world, or 3D if the holographic principle is true, and we regularly deal with mathematics 27 or more dimensions. LLMs build models with at least hundreds of thousands of dimensions.
It takes a considerable amount of depth in reasoning to see and reason about the patterns / problems / solutions.
Try doing a few of them by hand to see what I mean.
Simulated worlds are complex enough to hide their own flaws just like LLMs are complex enough to lead us to believe they can reason when most of the time they are pattern matching.
