Just because it's not that hard to reach a high-level understanding of the transformer pipeline doesn't mean we understand how these systems function, or that there can be no form of world model that they are developing. Recently there has been more evidence for that particular idea [1]. The feats of apparent intelligence LLMs sometimes display have taken even their creators by surprise. Sure, there's a lot of hype too, that's part and parcel of any new technology today, but we are far from understanding what makes them perform so well. In that sense, yeah you could say they are a bit "magical".
[1] https://the-decoder.com/new-othello-experiment-supports-the-...