I'm only talking about auto-generated links that can't be clearly disambiguated by the system. At worst, the experience wouldn't be any worse than it is today.
But they could be disambiguated by humans, which is my point. Humans understand context.
Whether or not something like that would be a net win for Wikipedia is up for debate I guess. That said, I think they already do have a bot that can do at least a limited amount of auto-linkification, but I can't swear to it.