Type families still are painfully slow
## Summary
The issue references the extremely resource heavy type family example that I shortly presented at the end of HIW 2026. We originally encountered this issue in https://github.com/clash-lang/clash-crypto, but also created a stripped-down reproducer at https://github.com/kleinreact/clash-crypto-etfr, only depending on `base`.
## Steps to reproduce
```
git clone https://github.com/kleinreact/clash-crypto-etfr
cd clash-crypto-etfr
cabal build
```
## Expected behavior
The reproducer shall build within less then a minute and shall only require a reasonable amount of memory. However, currently it takes more than a minute to compile and requires almost 16GB of RAM.
## Environment
* GHC version used: 9.10.3 (livelock), 9.12.4 (livelock), 9.14.1 (OOM)
issue