Does AI really need a paradigm shift?

The provocative public conversation I am having with Scott Alexander, of SlateStarCodex fame, already a meme, continues! In a fresh reply to my "What does it mean when AI fails?", Alexander has put forward his second stimulating critique of the week, "Somewhat Contra Marcus On AI Scaling". Which is not to say it's perfect; on the other hand, one doesn't need perfection in order to be provocative. I will respond briefly to the disappointing part, and then we then get to the good stuff.