> Chain-of-thought is crippled by structured outputs

I don't know if this is true. Libraries such as Pydantic AI and I would assume the model provider SDKs stream different events. If COT is needed then a <think> section would be emitted and then later the structured response would occur when the model begins its final response.

Structured outputs can be quite reliable if used correctly. For example, I designed an AST structure that allows me to reliably generate SQL. The model has tools to inspect data-points, view their value distributions (quartiles, medians, etc). Then once I get the AST structure back I can perform semantic validation easily (just walk the tree like a compiler). Once semantic validation passes (or forces a re-prompt with the error), I can just walk the tree again to generate SQL. This helps me reliably generate SQL where I know it won't fail during execution, and have a lot of control over what data-points are used together, and ensuring valid values are used for them.

I think the trick is just generating the right schema to model your problem, and understanding the depth of an answer that might come back.