(cut + 1 <>) is (lambda (x) (+ 1 x))
(cut + <> <>) is (lambda (x y) (+ x y))
The possibility of allowing changing argument orders by numbering them were discussed, but eventually dropped, since you can always fall back to lambda (arc's fn). So making it general would just increase complexity without gaining much more expressive power. At least that was the consensus there. (Of course you can argue otherwise)