It will be fun to see what we get here, but I have no doubt the extra tokens will be useful - lots of use cases can do almost as well with summary-level accuracy memory.
Now maybe this is more a lack of instruction following than context length but the fact that it works at first and then starts going downhill quickly makes me wary about how much it will pay attention to other details further back in the context.
Does anyone know if I am correct in my assumption?
That's similar to how previous long-context models worked as well, although the earlier iterations didn't work particularly well, as most have noticed; technically the model "worked" with longer contexts, but it would definitely get dumber. Still too early to tell how this newer variant works, although I'd assume it's at least somewhat better.