The tool-call history collapse is a problem I'd pay real money to have solved cleanly. My crude manual version: keep the function calls but drop or summarize the responses for anything older than ~15 turns. Most of the "what was I doing" signal lives in the calls, not the outputs. Letting the model itself mark "I'm done with that thread, compress the responses" feels like the right abstraction, but I haven't seen anyone ship it well yet.
A per-model "compaction aggressiveness" knob in Forge could be interesting — the small-model effective-attention cliff might respond to earlier/heavier trimming.