People way understimate what RAG can do, even if in general people don't talk about the right things. For example LlamaIndex spends a lot of time talking about various extractors which is the easy part. The hard thing is deciding what you are actually searching for given a chat context.
RAG is a horrible hack (and the more you understand about the more it seems so!) but it does work.
I (and I'm sure everyone else) is experimenting with surgery on an LLM so it takes a vector representation of the docs directly alongside a text input so you don't have to do the lossy doc vector -> text -> LLM context -> vector thing. Not sure why no one has shipped this yet though!