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If you want more context I recommend this episode of Epicenter: https://pca.st/episode/768f9efe-a0a0-4aa5-892f-e7dcb7c8079a I really like the idea of using truly light clients and minimal on-chain to create decentralized apps and protocols. This could be the answer to so many web3 critics saying that we don't need blockchains, because web2 is already decentralized (email). It is, kind of, but you still don't own your identity and privacy. This combines the best of 2 worlds.
This 'onchain minimization' was one of the ideas behind Kiwi architecture. Very few things - like Kiwi Pass contract and key delegation contracts - are stored onchain. Which btw was one of the reasons why we received such a small OP Grant - we didn't generate enough txs for the OP.