It can't be successful at that any more than 1+1 can equal 3. Fundamentally, if every token wants to be able to look at every previous token without loss of information, it must be O(n^2); N tokens looking at N tokens is quadratic. Any sub-quadratic attention must hence necessarily lose some information and be unable to support perfect recall on longer sequences.
One of my favorite bits of my PhD dissertation was factoring an intractable 3-dimensional integral
\iiint f(x, y, z) dx dy dz = \int [\int g(x, y) dx]*[\int h(y, z) dz] dy
which greatly accelerated numerical integration (O(n^2) rather than O(n^3)).
My advisor was not particularly impressed and objectively I could have skipped it and let the simulations take a bit longer (quite a bit longer--this integration was done millions of times for different function parameters in an inner loop). But it was clever and all mine and I was proud of it.
That's like saying sorting can be done in O(n) because radix sort exists. If you assume some structure, you lose generality, i.e. there'll be some problems it's no longer able to solve. It can no longer approximate any arbitrary function that needs perfect memory over the sequence.
It's a necessary assumption for the universal approximation property; if you assume some structure then your LLM can no longer solve problems that don't fit into that structure as effectively.
But language does have structure, as does logic and reasoning. Universal approximation is great when you don't know the structure and want to brute force search to find an approximate solution. That's not optimal by any stretch of the imagination though.
I'm not saying if the paper is correct or not (since I can't tell), but I don't think your argument really holds. Consider applying it to multiplication:
Fundamentally, multiplication need to look at every pair of integer from the two input numbers. It must be O(n^2); N digits looking at N other digits is quadratic. Any sub-quadratic multiplication must hence necessarily lose some information.
Integer multiplication x * y can be trivially done in O(k): k = log₂(min(x, y)). This is because we can do addition in constant time, adding all bits in parallel.
Well, for multiplication complexity is defined in terms of on the number of digits/bits digits directly. For attention, complexity is defined on terms of the number of input vectors which are all at fixed precision. I don't understand what happens to the method proposed in the paper at higher precision (since I don't understand the paper), but in reality in doesn't matter since there is no value in anything over float16 for machine learning.
Multiplication has some properties like being cumulative. If we assume the sequence has any specific properties then we no longer have a general sequence model.
And sometimes results are just unexpected. Did you know that anything a Turing machine can do in t tome steps, a different Turing machine can do in O(sqrt(t log t)) memory cells? https://news.ycombinator.com/item?id=44055347