With how much data goes into the frontier systems, and how much of it gets captured by them, an AI might have, in many ways, a richer grasp of human experience than the humans themselves do.

You were only ever one human. An LLM has skimmed from millions. You have seen a tree, and the AI has seen the forest it stands in.

First, "AI is thereby incapable" is a hypothesis, not a fact - how would you prove that you have to "live" to produce art? You might feel this way, you may suggest some correlations here - but can you really prove that?

Second, I don't see impossibility for AI to be - to various degrees - an agent to the world. I think that's already happening actually - they are interacting with world even today, in some limited sense, through our computers and networks, and - today - not many of them actually "learn" from those interactions. But we're in the early days of this - I suspect.