The point is that saying they're just "predicting the next token" is not at all explanatory nor providing insight. Saying the brain is just firing action potentials gives you no understanding about how the brain does what it does or what the space of its capabilities are. Similarly, predicting the next token tells you nothing about the capabilities of LLMs.
If you train the LLM on a corpus that shows people saying the sky is red, you get an LLM that is predisposed to say the sky is red. This is true even if it's also trained on all of the science that explains how and why the sky is blue.
If it were to "figure out" or "reason", it would not have such a predisposition to emit "red" after "the sky is" just because that matches the reward during training.
In other words, the token prediction is important because it both explains the successes AND the failures of the LLM. If there were situations in which a bird could fail to fly, then how it tried to fly would also be crucial knowledge.
You're caught up on the mechanics of token processing (floating point matrix ALU math) and ignoring the context that p(next token) as a function being "computed" is doing so over a trillion parameters. You can poorly train a model, sure, but assuming you don't indoctrinate it too much, properties like cognition emerge - it learns to reason; why? Reasoning is more efficient and compact than memorizing answers.