Graceful handling when hitting usage limits mid-session

Problem

When using Claude Code on the Max plan with 1M context models (Opus), hitting the usage limit mid-session completely locks the session with a 429 error: "Request rejected (429) · Extra usage is required for long context requests."

There is no way to:

• Save or export key context from the locked session
• Transfer context to a new session
• Compact the conversation to fit within remaining quota
• Even get a warning before hitting the limit

The session just stops working. All conversational context — decisions made, explored approaches, in-progress work — is lost unless you enable extra billing.

Requested improvements (any of these would help)

1. Warn before hitting the limit — give users a chance to wrap up, save state, or commit work before the session locks
2. Allow context export/summary — when the limit is hit, let the user extract a summary of key decisions, state, and progress that can be carried into a new session
3. Allow compaction at the limit — instead of hard-blocking, offer to compact the session down to fit within remaining quota
4. Don't hard-block the session — at minimum, allow read-only access to the conversation history so users can manually reconstruct context

Context

This is especially painful for users on the Max tier who are already paying for the highest available plan. Long sessions with large codebases and document work naturally accumulate context. Having the session die without warning or recovery options feels like a penalty for using the product as intended.