Also, if a human does this, you can replace them and get a human who will not do it. The default for an LLM is to generate plausible-looking text that may or may not be completely incoherent. That is not the default for a human. Again, if you find that your colleague consistently fabricates APIs, you can hire someone who isn't crazy instead, but you cannot do the same with LLMs.
That's absolutely false. My collegues don't routinely and confidently invent apis that are not there, or spectacularly and repeatedly misunderstand the purpose of certain functions or exhibit extreme forgetfullness. Especially when I've warned them. Hallucinations and confabulations in otherwise healthy individuals are mental disorders. When I ask them why they made an certain kind of error, I can expect to get a reasonable answer. No one has uttered the phrase "Bob hallucinated again while writing those tests" when the Bob in question is a human.
Calling hallucinations simply mistakes does not seem to me to be a healthy way to reason about LLMs. I can ask a collegue how well they can program in Ada and adjust my expectations on productivity and bug rates. I can't ask an LLM how well they can code in Ada (just a throwaway example), or even how much of Ada was in its training data. I have to actually spend money and spend time code reviewing before I can even formulate any expectations at all.