I think an LLM can be used as a kind of lossy encyclopedia, but equating it directly to one isn't entirely accurate. The human mind is also, in a sense, a lossy encyclopedia.
I prefer to think of LLMs as lossy predictors. If you think about it, natural "intelligence" itself can be understood as another type of predictor: you build a world model to anticipate what will happen next so you can plan your actions accordingly and survive.
In the real world, with countless fuzzy factors, no predictor can ever be perfectly lossless. The only real difference, for me, is that LLMs are lossier predictors than human minds (for now). That's all there is to it.
Whatever analogy you use, it comes down to the realization that there's always some lossiness involved, whether you frame it as an encyclopedia or not.
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