Perhaps you mean _Consciousness Explained_. Anyway, I don't think that believing in the possibility of AI indicates a lack of understanding of the current debate. Perhaps what was wanted was a more substantive picture of HOW AI might be possible. I haven't read the book, and i'm just going from the content of the comments in this thread, but personally, if I read an 800 page book whose conclusion was AI is possible, I too would be disappointed.
If Hofstader did more than that, good for him. If he didn't, then I would suspect the book is indeed 'masturbatory'.

And I think it would be worthwhile to avoid the Dennett in any case. He's a skilfull metaphor crafter, but not philosophically very deep.