The signal here is tokeneconomics are very real, price vs performance is starting to be a consideration even at the bleeding edge labs. maybe a subtle indication scaling is not all that is needed since if AGI was around the corner leading labs would still be incentivized to pour all resources into larger (smarter - or maybe not?) models

They are doing both. Distilling Mythos down to affordable models, so they can continue to fund the business. And training Mythos level models at the high-end, to expand the frontier.