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The user is still in a privileged position. The outer conversation loop with the model is still "the main world". But it can do stuff in its computational environment and that stuff persists.
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The RLM hooks up the language model directly to the REPL and puts the context in as a variable. The LLM can operate over large documents or its own memories or whatever is in that context variable. It can call the human user with a final answer, or call a sub-LLM with its own {prompt, context} input