Well the algorithms used are fairly general. If you can classify an image, you can detect the objects in them and where they are.
The tasks are high interrelated. In classification they search different parts of the images at different scales to try to find a match. And in localization they run a general classifier across the image and find where it detects objects.
In fact the classifier is now being used to actually describe images in natural language.
None of that has much to do with whether the task in question is an "everyday vision task".
(And: How closely did you read the article about a human trying the challenge? Something like 2/3 of his errors were (1) a matter of not being able to identify specific varieties of dog etc. reliably, (2) not being familiar with the specific set of 1000 labels used by the ILSVRC, and (3) not having seen enough examples -- typically of particular varieties of dog etc. -- in the training set to be able to make a good call. I think the comparison of error rates gives a poor indication of relative performance -- unless what you're mostly interested in is classifying breeds of dog, I guess.)
Instead of prognosticating on AGI/Strong AI/Singularities, I'd like to discuss more concrete advancements to expect in the near-term in AI. I invite those who have an interest in AI to discuss predictions or interesting trends they've observed.
This discussion should be useful for anyone looking to research or work in companies involved in AI, and might guide longer-term predictions.
With that, here are my predictions for the next 5-10 years in AI. This is mostly straightforward extrapolation, so it won't excite those who know about these areas but may interest those who don't: