If we are talking analogies, this is just Sora forgetting because of limitations of how the network handles the autoregressive dynamics. When they make a bigger version of Sora this will happen less. Sora aleady has unprecedented object permanence, see the woman walking in Tokyo scene where signs and people are reconstructed after two seconds of occlusion. Soon we will have object permanence following ten or more seconds of occlusion. Then a minute. Then three minutes. Then we will figure out a trick to store long term memory. What will people say then?
It's also what happens when we dream: everything is fluid. Things appear and disappear, people and places become someone or somewhere else, reading is difficult and hands are distorted.
Because these systems are dreaming about their datasets. Or hallucinating about it, as people have decided to call lately. I won't say this is a dead end. I will say we are very, very short of any sort of actual intelligence.
