I'd definitely agree that it isn't directly model size, but there is the fact that a larger model in terms of parameter count needs a large amount of training data to not overfit or underfit. So I think this race to the top of "max training data size" has kind of led to unintentional overfitting, not catastrophically, but enough to trigger this perceived omniscience within the model
Yes, that's when we are mindful and we see the arise in our mind but we don't directly act out of it but we understand it and reason about our options and the consequences.
However the fear has to arise in the first place, to raise the alert.