Not for coding because it actually needs to read and write large files

Well, sort of. Imagine the case where it first scans the repo, then "intelligently" creates architecture files describing the project. The level of intelligence will create a varying quality of summary, with varying need of deep-scans on subsequent sessions. Level of intelligence will also increase comprehension of these architecture files.

Same principle applies when designing plans for complex tasks, etc. Token amount to grasp a concept is what matters.

Tbf, I have not super kept track of what is actually happening inside the "thinking" portion of recent releases. But last time I checked there still was a lot of verbosity and mistakes, that beat the actual amount of required, usable code generation by a wide margin.