Xet's tech is very interesting and I greatly enjoyed their blog posts and other technical writeups[0]
But in the era of frontier models and hardware designed for fast model loading (eg: LLM on a chip) I can't imagine that this is worth so much. There's *a lot* of competition to improve Git LFS.
So while I agree with you that this plays a role I also have to believe that it's to understand model usage by competition and thus stifle it.