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Bottom line: I don't know what the best thing is yet. But Haskell is quite painful in many ways, so I choose to believe that there is some better option out there waiting to be found. :) I haven't heard any arguments against named instances, but would love to hear some.
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Coherent instances also tend to end up with people relying on it when designing their APIs, so you need to figure out how to train people out relying on that and provide alternatives.
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