I do like context engineering better, I also agree that there's a lot that goes into getting good answers out of LLMs and GPT wrapper is a gross oversimplification for many of the products being built on top of them. Just putting good evals in place is often a complicated task.
I love the term! But I do think it's both really, after all this time, LLMs are still very finicky, even the order of the instructions still matter a lot, even with the right context, so you are still prompt engineering, ideally this will go away and only context engineering will remain
This is key
Besides model capabilities, one of the most important aspects of AI-assisted development right now, is context management
Cursor et al try to automate that for the user, and it works up to a point. But at a certain level of complexity, the user needs to get actively involved in managing the context
It also seems like some people who say they are having very good results with agentic coding, take a lot of care in managing their cursor rules or claude.md files