Every current LLM is built this way so it is a hard and fast rule.

No, that is a trend, not a rule, and the former of which I would argue is not even 100%. Claude in my experience of using it seems to be designed to be more conversational and factual, not strictly entertaining.

And right now its incredibly foolish to believe what an LLM tells you. They lie, like a lot.

I never said you should believe everything an LLM says. Of course a critical mind is important, but one can't necessarily just assume any answer they give is wrong either just because they're an LLM. Especially in this stage of LLM development; the technology is still maturing, still in its infancy.

I’m only talking about current iterations. No one here knows what the next iterations will be so we can’t comment on it.

Generally the more a technology matures out of its infancy the better it becomes at the job it's designed for. If an AI is designed to be entertaining, then yes it will be better at that in time; but likewise also if it's designed for factuals. And I already said what I think about the current state of development in regards to that.

Therefore, I think it's a reasonable assumption that as time goes on, the frequency of hallucinations will go down. We're still working out the kinks, as it is.