It is interesting that the model I am proposing inverts many peoples expectation of how LLMs will benefit us. In one vision, we give a data-lake of information to LLMs, they tease out the relevant context and then make deductions.
In my view, we hand craft the context and then the LLM makes the deductions.
I guess it will come down to how important crafting the relevant context is for making useful deductions. In my experience with writing code using LLMs, the effectiveness increases when I very carefully select the context and the effectiveness goes down when I let the agent framework (e.g. Cursor) figure out the context. The ideal case is the entire project fits in the context window obviously, but that won't always be possible.
What I've found is that LLMs struggle to ask the right questions. I will often ask the LLM "what other information can I provide you to help solve this problem" and I rarely get a good answer. However, if I know the information that will help it solve the problem and I provide it to the agent then it often does a good job.