Butterflies... terrifying large, kilometer-scale butterflies.
But dynamically uninteresting, quasi-balanced setups and modes? There's far less to worry about in terms of the butterfly effect, and any errors you might worry about will be dwarfed by the fact that we don't have good data to assimilate in places like the remote oceans anyways.
It's also worth pointing out that the mathematics and understanding of error / perturbation growth in the atmosphere are well-understood. In fact, this fundamentally underpins how we've developed data assimilation approaches over the past two or three decades that allow us to effectively leverage new datasets such as satellite data to increase forecast quality and reliability at longer lead times. So it's somewhat trivial to actually directly quantify these "butterflies."
> It's not as though this is part of a growing trend to abandon conventional weather and climate modeling.
The thing is, there *absolutely is* a trend towards private investment in weather modeling going towards faux-moonshot ideas like cubesat constellations without demonstrated ROI and that would require evolutionary leaps forward in data assimilation, or for deep learning to replace weather models. A miniature version of this already played out with precipitation nowcasting - probably the easiest weather forecasting problem that you could approach with an AI system, yet the approaches that have been developed so far barely improve over optical flow or other simple approaches, let alone advance our capability to forecast, say, convective initiation.
The future of weather forecasting is larger ensembles (O(100-500) ensemble members, across 2-5 different models) of near-convective-resolving global models at meso-gamma (2-10 km resolution) fed into slightly more sophisticated statistical post-processing systems - almost certainly trained using simple AI/ML techniques on large-scale reforecasts of these parent model systems, or brute-forcing purely Bayesian statistical approaches.
There are some profound problems with that idea once you get below 10 meter or so, but I'll let you think that one through yourself.