Fair enough. I really like the tarpit analogy, wasn't familiar with it. You can keep pulling your feet out faster than the tar rises, as long as you're willing to keep spending the energy, possibly with diminishing returns over time.
I think we're basically agreeing here. Your point (if I'm reading it right) is that taste and discernment do scale, but the gains come through pretraining/parameter scaling, which is slow and expensive compared to the fast, cheap wins in math/coding from smaller models. So taste is more of a lagging indicator of scale. it improves, but it's the last thing people notice because the benchmarkable stuff races ahead. Which also means taste isn't really a moat, just late to get commoditized.
If you're properly bitter-lesson-pilled then why wouldn't better models continue to develop and improve taste and discernment when it comes to design, development, and just better thinking overall?