Not really a bar raise - many people have assumed that "AGI" would mean essentially omnipotent/omniscient AI since the concept of the technological singularity came into being. Read Kurzweil or Rudy Rucker, there's a reason this sort of thing used to be called the "rapture for nerds."

If anything I've noticed the bar being lowered by the pro-AI set, except for humans, because the prevailing belief is that LLMs must already be AGI but any limitations are dismissed as also being human limitations, and therefore evidence that LLMs are already human equivalent in any way that matters.

And instead of the singularity we have Roko's Basilisk.