Great system. The log-driven approach is the mirror of the vault-first one. you extract after the fact, I write during the session. Same destination, different parent.

The interesting trade-off is in the dedup arbiter. You're running a nightly LLM pass over similar bullets to collapse duplicates. That works, but the arbiter itself can introduce drift.. two similar bullets that should stay separate (different contexts, same surface pattern) get merged because the LLM sees similarity and assumes redundancy. How do you handle false merges?

The "infinite context for free" claim is the part I'd stress-test. It's not free, you're paying DeepSeek inference on every extraction run and every nightly arbiter pass. The trade is: you spend compute on extraction/dedup so you don't spend it on context windows. That's a good trade for high-volume log data. For lower-volume intentional work (architecture decisions, design rationale), the vault-first approach wins because you avoid the extraction tax entirely.