Regarding context reduction. This got me wondering. If I use my own API key, there is no way for the IDE or coplilot provider to benefit other than monthly sub. But if I am using their provided model with tokens from the monthly subscription, they are incentivized to charge me based on tokens I submit to them, but then optimize that and pass on a smaller request to the LLM and get more margin. Is that what you are referring to?

Yup. but also there was good reason to do this. Models work better with smaller context. Which is why I rely on Gemini for this lazy/inefficient workflow of mine.