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It’s on the falling edge of the hype curve. It’s quite expected, and you’re right about where it’s headed. It can’t do everything people want/expect but it can do some things really well. It’ll find its niche and people will continue to refine it and find new uses, but it’ll never be the threat/boon folks have been expecting.
People are using it for things it’s not good at thinking it’ll get better. And it has to an extent. It is technically very capable of writing prose or drawing pictures, but it lacks any semblance of artistry and it always will. I’ve seen trained elephants paint pictures, but they are interesting for the novelty, not for their expression. AI could be the impetus for more people to notice art and what makes good art special.
Thankfully there are other options because you just nailed the two places I refuse to ever get gas from when there is any other option. If there was a good third option I’d take it here, but while Google commands so much market share and a new competitor would probably siphon users from Bing (and it’s not enough users) I don’t think a real alternative will come. I’m intrigued by kagi, though.