For me the key insight from this post is:

“With AI systems, you want the user to have an intuition about what context is available to it.”

At the same time that sounds like a power user concern. It’s like normies using Google for decades without once using search operators.

The user mouse tracking is cool. But distracting. I got distracted by them and stopped reading

Agree, but it looks like the "Quiet Mode" toggle hides them.