Earlier quoted context omitted.
Isn't grep + LLM a form of RAG anyway?
Yeah 100% Almost all tool calls would result in rag. Rag is dead just means rolling out your own search and manually injecting results into context is dead (just use tools). It means the chunking techniques are dead.
If you want to know "how are tartans officially registered" you don't want to feed the entire 554kb wikipedia article on Tartan to your model, using 138,500 tokens, over 35% of gpt-5's context window, with significant monetary and latency cost. You want to feed it just the "Regulation>Registration" subsection and get an answer 1000x cheaper and faster.