Re: Is it a bug?
If you have to insert an explicit rule, it's not AI. It's a human-written heuristic.
You might well argue, though, that natural (human) intelligence is a massive mish-mash of heuristics, learning algorithms and expedient hacks assembled and honed over evolutionary time scales.
That's what general (i.e., non-domain-specific) AI is up against - and yes, it's hard, and we're nowhere near yet. And of course it's hyped - what isn't? Get over it, and maybe even appreciate the incremental advances. Or better still, get involved and make it better. Sneering never got anything done.