I think what the OP is implying that the intelligence we find in nature is not isolated computation but is physically situated - it can sense and manipulate it'

I think what the OP is implying that the intelligence we find in nature is not isolated computation but is physically situated - it can sense and manipulate it's environment. The current DNN based approach do not do that. Sure you can create an autonomous vehicle that uses NN to help navigate - but it does not update it's inference if it is incorrect. That immediate feedback doesn't exist or rather it is not accessible to the system itself. One has to collect the data, retrain the network and deploy it again to close the loop.