As always, it depends. I've got less than a handful of contexts and I need them. Life is more than just @work... ;-)
I like your reminder that contexts need not be physical environments. David Allen was describing *his* system, so he probably had mainly physical places as contexts.
It's great when you can treat projects as contexts. I can't - there are actions that definitely belong to a project that I just can't do at the customer's site (I'm a freelancer).
I'm using GTD and contexts since 9 years now, and meanwhile it shows that the idea has been watered down by an endless stream of chatter in blog posts. There is nothing like @short or @lo-energy in David Allen's approach, on the contrary.
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