Recent research from NVIDIA suggests such an efficiency gain is quite possible in the physical realm as well. They trained a tiny model to control the full body of a robot via simulations.
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"We trained a 1.5M-parameter neural network to control the body of a humanoid robot. It takes a lot of subconscious processing for us humans to walk, maintain balance, and maneuver our arms and legs into desired positions. We capture this “subconsciousness” in HOVER, a single model that learns how to coordinate the motors of a humanoid robot to support locomotion and manipulation."
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"HOVER supports any humanoid that can be simulated in Isaac. Bring your own robot, and watch it come to life!"
More here: https://x.com/DrJimFan/status/1851643431803830551
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This demonstrates that with proper training, small models can perform at a high level in both cognitive and physical domains.