The ownership class will be sharper. They will know how to exploit capital and turn it into more capital with vastly increased efficiency. Everybody else will be hosed.
There is a fundamental problem with this thinking, you are making an assumption about scale. There is the apocryphal quote "I think there is a world market for maybe five computers".
You have to believe that LLM scaling (down) is impossible or will never happen. I assure you that this is not the case.
but what if we succeed in gamifying the latent knowledge in LLM's to upload it to our human brains, by some kind of speed / reaction game?
I'm not sure if people will be more hosed than before. Historically, what makes people with capital able to turn things into more capital is its ability to buy someone's time and labor. Knowledge labor is becoming cheaper, easier, and more accessible. That changes the calculus for what is valuable, but not the mechanisms.