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You all ready to feel my downsies?
I think Pokemon (almost all of them) are practically as intelligent as people, but can still be overridden with instinct (wild/newly caught especially). I think the reason why starters are starters is because of their intelligence, loyalty, and ability to get along with their trainers. This becomes easier to see as they age/evolve.
I do however think that Pokemon, while they can be as intellectual as people, are still animals and can be treated like pets while not feeling like a lesser being, provided you still respect that fact that it probably understands you and can most likely kill you. That's why you can pet its head and hug it and it's like having a friend but petting a cat or puppy or whatever.
The easiest way I can explain it shortly is that it's like if your dog could understand you and was sapient.