This is one of the dangers. AI boosters would say that humans already do this compression and it was accelerated by mass media and then the internet, and that model memory + context can be broad enough that compared to human capabilities the opportunities for depth and variability are even greater. But I think we know which way this optimization usually goes. Even the notion of a "fine-tune for subtlety" is a contradiction.

I don't think so. It's pretty clear that LLMs use the higher level layers for reasoning, so a bit of logorrhea very possibly enriches the result quality.

Nah reducing token length means that we're just reducing English down towards a programming language like a nice demi-glace