We still regularly call enemies in games AI despite the fact most of them are just A-star pathing and simple state machines. It's considered AI as long as there is an actor that behaves in a way that resembles human reasoning or decision making to accomplish a goal. People continue to call Stockfish an AI for this reason. We use the term AGI because most AI is domain specific. We should probably use the word dynamic or static to describe an AI that can adapt it's algorithm to the problem in real-time.

Depends on the problem. Most vision impairments are caused by bad optics like myopia, but from what it looks like, this could help those who have retina damage from uv like welders, detached retinas, or even color blindness. It would be cool if they could also use this to expand our color vision!