I think "intelligence" is technically a fair word to use for something that gathers and utilizes information correctly or accurately, but I would agree with you that a distinction does need to be made.

I prefer to call it the difference between intelligence and wisdom. Just because you can acquire knowledge doesn't mean you can problem solve effectively or think creatively, and LLMs are a great example of that.

AI can absolutely help people gain knowledge quickly, and optimistically, this could give us MORE opportunity to focus on what really matters: the raw ideas and concepts behind the knowledge, the effective application of knowledge, creativity, and real wisdom.

That's why I'd agree with you that distinctions about what AI can and can't do is extremely important for us to make the most of it and avoid being completely stunted by it. Using AI does not inevitably enslave you.