There is definitely a precision-performance tradeoff to consider. We explored this through ablation studies on bitwidth precision / resource usage in our work (Figure 6a in https://arxiv.org/pdf/2512.12850, Figure 4 in https://arxiv.org/pdf/2602.02056). Further exploration into the mechanics here would definitely be useful.
Regarding your point that "90% of the benefit of KANs can be gained from a small variety of function shapes": even within the B-spline basis, the shapes are quite uniform. Much of the actual benefit of scaling up the basis size comes from learning more complex, piecewise-polynomial activation functions. Scaling up the number of basis functions (i.e. more granular intervals) also increases locality and allows the activation function's value across different parts of the domain to be learned semi-independently. (There obviously is a tradeoff here with overfitting.)
The number of basis functions (G+S) is largely what determines how expressive the activation is, as it relates to your point: "you could have a representation that scales from a standard relu perceptron though KANs to something with weighted inputs and fancy weighted activation functions."
Can I just say that this is extremely impressive work for a master's level thesis. Incredible work and I hope you manage to continue fulfilling your fantastic potential in your career!