Yea but the goal it not to bloat the context space. Here you "waste" context by providing non usefull information. What they did instead is put an index of the documentation into the context, then the LLM can fetch the documentation. This is the same idea that skills but it apparently works better without the agentic part of the skills. Furthermore instead of having a nice index pointing to the doc, They compressed it.
Context quite literally degrades performance of attention with size in non-needle-in-haystack lookups in almost every model to varying degrees. Thus to answer the question, the “waste” is making the model dumber unnecessarily in an attempt to make it smarter.
Think of context switching when you yourself are programming. You can only hold some finite amount of concepts in your head at one time. If you have distractions, or try to focus on too many things at once, your ability to reason about your immediate problem degrades. Think also of legacy search engines: often, a more limited and focused search query vs a query that has too many terms, more precisely maps to your intended goal.
LLM's have always been at any time limited in the amount of tokens it can process at one time. This is increasing, but one problem is chat threads continually increase in size as you send messages back and forth because within any session or thread you are sending the full conversation to the LLM every message (aside from particular optimizations that compact or prune this). This also increases costs which are charged per token. Efficiency of cost and performance/precision/accuracy dictates using the context window judiciously.
The minification is a great idea. Will try this.
Their approach is still agentic in the sense that the LLM must make a tool cool to load the particular doc in. The most efficient approach would be to know ahead of time which parts of the doc will be needed, and then give the LLM a compressed version of those docs specifically. That doesn't require an agentic tool call.
Of course, it's a tradeoff.