The addition of functional dependencies to multi-parameter type classes all of a sudden opened up the possibility of doing type level computations that had not been there before. The type level programming industry seems to have started with Thomas Hallgren's 2001 paper Fun with Functional Dependencies (which got some…
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I think the only serious gripe is what you call your biggest gripe, and I must say that I envy this in Haskell. As you know, in the eager world we tend to write out our own recursive functions, rather than use combinators. You give part of the reason; the other part is that deforestation and related transformations…