Hallucinations in AI are fairly well understood as far as I'm aware. Explained in high level on the Wikipedia page for it. And I'm honestly not making any objective assessment of the technology itself. I'm making a deduction based on the laws of nature and biological facts about real life neural networks. (I do say AI is driven by the data it's given, but that's something even a layman might know)

How to mitigate hallucinations is definitely something the experts are actively discussing and have limited success in doing so (and I certainly don't have an answer there either), but a true fix should be impossible.

I can't exactly say why I'm passionate about it. In part I want people to be informed about what AI is and is not, because knowledge about the technology allows us to make more informed decision about the place AI takes in our society. But I'm also passionate about human psychology and creativity, and what we can learn about ourselves from the quirks we see in these technologies.