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My kiddo will often embark upon a sentence with no idea of how to choose anything beyond the next few tokens, and then continue reaching for new stuff, merely to keep the sentence going.Exactly right. Now, the "context window" observation hit me when I started to think not where the story is going, but where it's already been, and suddenly noticed that the repetitiveness in my daughter's rambling is meaningful.
I.e. she'd go on and on saying things like, "and my brother turtle has this, and his brother hedgehog, hedgehog the brother of my brother the turtle wore an apple, and the brother of the turtle which is my brother, turtle is my brother and his brother hedgehog did this and that, etc." - and I realized that this is her way of carrying context forward; anything that wasn't repeated in the past ~30 seconds would never appear again in the story, or would in a changed form ("the hedgehog, the sister of giraffe Betty, ...").
Over time, I could see how she was learning to be more economical with limited working memory, and faster at accessing the long-term memory (initially, recalling some detail would take a lot of visible effort, and take so long it would wipe half the context, leading to a huge shift in the story) - and I can't help but think that having to push hard against the limits of a small context window is important in development of language and intelligence in general. Figuring out different associations, faster associations, more indirect associations.
I wonder what the internal drive for this is, too - what made her improve her thinking to produce more interesting stories within the same memory limits, instead of getting forever stuck sounding like a Markov chain trained on the Book of Chronicles[0]. Some positive response to novelty, perhaps?
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[0] - https://www.biblegateway.com/passage/?search=1+Chronicles+1&...