LLMs already think in latent space. The generated reasoning tokens are only the surface of what's happening internally. An LLM may write one thing in the traces but decide differently in the latent space. The whole token-based "reasoning" thing was just a clever hack to extend the existing architecture without completely redoing it. In one of Anthropic's recent papers, they added an additional subnetwork trained to map internal states to readable text, so that's probably the vector of further development.