Hi Georgina --
Your essay covers a lot of territory, and I found the list-structure a little bewildering, since each item on each list would take me some time to feel clear about. Similarly, there's so much going on in your diagram that I don't yet feel that I understand what it's saying, as a whole.
But this reflects the situation we're all in, if we try to envision the foundations of physics. There's such a vast amount of theoretical structure that's more or less well-verified, empirically. Most of the essays in the contest focus on one particular aspect of the problem, which makes them easier to understand. But like you, I imagine that at bottom the world does not reduce to a simple picture. The issue is to find the right question, that can get us on the track of understanding why the world is built as it is. And I can see that's what you're trying to work out here.
One comment -- I like the fact that you're thinking of the "Image Reality" as integral to the picture, as well as the "Object Reality". In my essay ("An Observable World") I tried to develop a different but perhaps related approach. First, I made a distinction between the subjective "image" constructed by an observer and the environmental structure of communicated information the observer has access to. I think it's this communications structure that physics needs to describe, while what any particular observer does with the physically available information is a separate issue, not relevant to fundamental physics.
Second, I think that once we have a framework that lets us understand the structure of the informational environment we live in, we'll see a different relationship between it and the "Object Reality". I think of the factual reality in physics as the information content that's defined and conveyed by the web of communicative interaction. And my hope is that by understanding how and why such a web could evolve, we'll be able to understand the very complex, mutil-layered patterns of objective fact we find in physics -- extremely complex and indeterminate at a fundamental level, yet relatively simple and highly deterministic at the level at which observations and measurements are made.
Getting back to your essay, it looks to me as though there are a great many interesting ideas here. Apart from this essay contest, which prompted you to build a remarkably comprehensive picture, I hope you're able to work out some of the many specific issues you raise in another format, that would let what's special in your approach stand out more clearly. I had a similar problem in my essay -- even after cutting out many points that seemed very important, I still ended up putting so much into the essay that I'm sure many readers found it hard to grasp.
Thanks -- Conrad