The Magic Wand tool mostly just selects similarly colored pixels based on a simple algorithm. The Object Selection, Select Subject and Sky Replacement tools use AI detection and can be configured to run locally or on Adobe's GPUs. Having played with this demo, they seem in a similar league to me.
I think you haven’t played around enough with it, you can prompt it to segment literally anything in an image. Not just regions of similar texture, it understands humans, dogs, cats etc