Perhaps you're right about my misinterpretation... the overall implication I took from it was that a genetic algorithm was applied to a circuit that could be rewired itself; this increased the level of complexity possible and from this (and this is where I sensed the implication that we have something akin to a biological system that is living) we have the result of something that is autonomous and sensing in a way that it can interact with humans the way a dog might (as highlighted in the first paragraph). Also the use of the word "creatures" in the title sort of threw me off...

There's much I don't know about genetic algorithms; perhaps more background in that area would help. I thought that the benefit of using genetic algorithms was to create novel designs that are unlike anything a human being would normally create.