The compression-of-knowledge framing is the part that finally made this click for me too. What I keep bumping into on the practical side is that the 'it somehow works' surprise cuts both ways. I run these models locally on modest hardware, and the same thing that makes next-word prediction feel like magic also makes them weirdly brittle: a model that should fly on paper will crawl the moment the runtime or the quantization is slightly off. The understanding vs pattern-matching debate honestly matters less to me than the fact that the behaviour is emergent enough that you cannot fully reason about it from the arcitecture alone, you have to run it and watch. Good writeup, the library analogy is a keeper.