> Consider the case of a set implemented as a binary tree. The type of such a set should be parametrised by the type of the elements and the ordering used. With applicative functors this is the case as your set type will be `Set(O).t` where `O` is a structure containing the type and the ordering. With generative functors each individual set type is abstract -- so the type itself is not parameterised by the ordering.
You make a good point about this not being strictly about type classes. But I'd say that the issue is only a problem in the presence of implicit resolution, since otherwise, you can just bind the result of the functor to a structure once and be done with it. It becomes an issue with type classes, because you don't have the choice to share a single structure during elaboration.
IMO, the generative version is still better for most use-cases (pure or not), but it's nice that you can have both in OCaml.