Closure sounds like a nice property in theory. In practice, it's built on the idea that you have to hide things, because things tend to break and encapsulation is the only way to keep that breakage from spiraling out of control. But in Elm, things don't break very often, and when they do the compiler is there to catch them. So don't worry about components, just use functions. That said, there's a very important point in OP about state for HTML tags. For example, the reuse section of the guide has an example with checkboxes. These boxes send messages to toggle their state when they are clicked. But, there is no way to pre-populate the state of the checkboxes for example with information you get from the server. In another thread, I think this is worth discussing. If some HTML tags are stateful what do we do about that, without jumping down the rabbit hole of components?
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