I’m not an AGI fanatic but I will try to address it.
Due to several reasons, based on ethics, the possibility of violent reaction, etc., there is an upper bound on how much power (read work / time), or more generally performance ( results / resources) we can squeeze out of us and other fellow humans. This upper bound limits the crystalization process that you mention.
Technology enables us to push that upper bound, and it has been applied in a lot of areas - including the improvement of thought assistance (programming, excel, etc.).
But the actual thought is an untapped area that resists automation; and, following Amdahl’s law, the more you optimize a part, the more the non-optimized part weights as the reason we don’t go quicker. You can see this in the growing demand of intellectually intensive jobs in the last couple of centuries, and the huge salaries that elite workers in finance or programming command.
If we reach thought automation that is at least on par with humans, we have just opened the only area that was resisting optimization, and we can suddenly improve entire dimensions that were out of bounds.
And, as a free bonus, we can now more easily convert capital to labor (just deploying more machines and “cloning workers”, instead of raising children).
This could create a runaway effect, or at least have an immense multiplicative effect.
Until now, your central point still stands:
> Elon Musk is nothing without the experimentation, empiricism, and the sum total of human knowledge accumulated to this day.
That /is/ true. But! If AGI is reached, you a) can buy your own Elon, b) can copy it, improve it, experiment with it and generally manage it in ways we currently can’t; and c) you start to accumulate knowledge capital at increasing velocity that is yours and doesn’t decide by itself to die, quit and go elsewhere, or play politics with its power instead of diligently working. So from where we stand, it seems reasonable to expect a “winner takes all” scenario.
In sum: a huge part of the initial value doesn’t come (nor needs) from god-level power, but from “enslaving” thinkers the way we “enslave” production lines, cars and computers. None of this requires something a thousandfold more intelligent than the average human. Not at first at least... ;)