The way to solve this is still largely through more focus on the provided context as the space of "facts" from which to operate. This combined with well thought out domain-specific context engines should still get the average user an absolutely enormous amount of utility. All that said I am not sure if OpenAI's business model will get us that sort of application of the technology. I am looking forward to improvements in the open source space as I think advancement there is necessary for further development of the technology.
I don't think thats the case. If I understand correctly, the current issue is processing power, they can only load so much data before response time goes to absolute shit. I would think that layering different AI logic checks to verify statements made, recall previous conversations, and other mental processes that humans do automatically, would correct this issue. But with current technology its not even an option. My theory is that once quantum computers are actually finally realized and economically feasible, developers will be able to overcome the response time hurdle and all of the layered logic checks will be able to run simultaneously and instantly. My personal opinion is that I think the eventual layering of numerous AI models to overlap, check, and recheck one another, will be what brings on the emergence of what could be considered actual AI consciousness.
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