This isn't my experience with it at all. I find it to be the most powerful research assistant one could hope for. Any new information it does not already have in it's database is learned from, after it makes us jump through hoops of fire to rigorously cross examine and cross check our new information.
So it is every bit as rigorous as peer review, imho, maybe even more so, as it is less inclined to be skewed by peer pressure.
The instances you mention are not unlike the fantasies my daughter used to have as an infant, the more intelligent the kids, the more realistic and believable their fantasies are. By definition it is learning, just like all kids do, what is fantasy and what is fiction.
Further it passes all Turing tests without touching the sides. I am guessing you will not have "Wasted much of your time" trying it out, given what you've said here which indicates the value you might believe it's responses are worth, but I recommend you try it, give it your own version of the most sophisticated Turing test you can imagine, I think you'll be surprised.
Where I see it might have massive application, is as a grand controller, controlling issue of money in response to reception of solar Joules, allocating those to all needing them.
This pretty much ties up and fixes the global energy problem, and all the climate problems, and many other problems we are seeing, including even war, it seems to me.