AI is 'creative enough' - whether we call it 'synthetic creativity' or whatever, it definitely can explore enough combinations and permutations that it's suitably novel. Maybe it won't produce 'deeply original works' - but it'll be good enough 99.99% of the time.
The reliability issue is real.
It may not be solvable at the level of LLM.
Right now everything is LLM-driven, maybe in a few years, it will be more Agentically driven, where the LLM is used as 'compute' and we can pave over the 'unreiablity'.
For example, the AI is really good when it has a lot of context and can identify a narrow issue.
It gets bad during action and context-rot.
We can overcome a lot of this with a lot more token usage.
Imagine a situation where we use 1000x more tokens, and we have 2 layers of abstraction running the LLMs.
We're running 64K computers today, things change with 1G of RAM.
But yes - limitations will remian.