[Jarwain]

I lean towards a variant of option 1: you can only generate an article that was previously referenced. But arbitrary phrases, clauses, sentences, paragraphs, can be highlighted and used to form a new article.

Yes this may mean that there are pages for common words like "and"

Yes this may mean that there's a page for letters like "x"

Filtering what ends up becoming a hyperlink becomes a problem that I think can be solved with regex/whitelisting

I think articles should have a backlinks drop down. Might make consistency easier As well as generally just plain text search to pull relevant articles or context when generating a new article.