Anthropic also recently said that they think that longer/compressed context can serve as an alternative (not sure what was the exact wording/characterization they used) to continual/incremental learning, so context space is also going to be competing with model interaction history if you want to avoid groundhog day and continually having to tell/correct the model the same things over and over.
It seems we're now firmly in the productization phase of LLM development, as opposed to seeing much fundamental improvement (other than math olympiad etc "benchmark" results, released to give the impression of progress). Yannic Kilcher is right, "AGI is not coming", at least not in the form of an enhanced LLM. Demis Hassabis' very recent estimate was for 50% chance of AGI by 2030 (i.e. still 15 years out).
While we're waiting for AGI, it seems a better approach to needing everything in context would be to lean more heavily on tool use, perhaps more similar to how a human works - we don't memorize the entire code base (at least not in terms of complete line-by-line detail, even though we may have a pretty clear overview of a 10K LOC codebase while we're in the middle of development) but rather rely on tools like grep and ctags to locate relevant parts of source code on an as-needed basis.