Squares are rectangles. The existence of rectangles that aren't squares doesn't negate that.
AI is different because the magic clearly is because of the tech. The fact that we get this emergent behavior out of (what essentially amounts to) polynomial fitting is pretty surprising even for the most skeptical of critics.
It's not a very legible situation for people outside of the profession, and a lot of them believe it's just another grift that will blow up in a few years.