Yes, you're absolutely right. I was pushing it on purpose to see if there were any guard rails. I didn't really fault it for doing what it did, and wasn't even surprised. But it did illustrate the difference between it and a human DM, as you say, or a programmed text adventure (which can often be frustrating in the other, artificially constrained, direction). It actually lead to some really bizarre and enjoyable stream of consciousness type output when I pushed it even farther, and ended up almost trippy.