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I think you are misinterpreting the quote. In the last sentence, the word "source" does not mean "source of these theories (K-theory, categories, group representations", but "source of the theory of symmetric functions". Rota is not claiming that K-theory, etc. have "at their core the ordinary, crude definitions of symmetric functions", but that "the theory of symmetric functions", tautologically, does. What he is saying, it seems, is that the beautiful and rich theory of symmetric functions can be and has been developed without the need of modern fashionable abstract theories.