No, that's an eye there alright -- recon sure confirms it in their vortex reports and microwave satellite imagery show it developing earlier today as well:

Dolly is moving along a gradient of oceanic heat content right now, avoiding a cool eddy to its south and a warm eddy to its north:

It is along these gradients where storms seem to try to intensify at a fairly rapid clip, likely due to the enhanced flux potential the gradients provide. With waters sufficiently warm to provide ample oceanic heat to the storm, the only thing that should constrain Dolly's intensification should be landfall sometime tomorrow very near Brownsville. I'd place my bets in the high-end category 2 range with a little bit of wiggle room in either direction.