Brain,
I really enjoyed your essay. It provides a new perspective on some issues I have thought about a good deal. A few questions.
1. Have you thought much about applying ideas like these to the fundamental structure of spacetime? My guess would be yes, since the ideas are rather universal, and since you relate them to general information-theoretic principles like holography.
2. A related question: have you thought about applying things like causal graphs to these ideas? Even in the quantum Ising model, the whole point is causal locality. Ideas like these can be useful even for quantum computing; for instance, the quantum CNOT gate corresponds to an "N-shaped" causal graph, and as you mentioned, choosing also an appropriate single-qubit gate gives you a universal family of gates. Hence, any quantum computer corresponds to a causal graph. Personally, I have thought about trying to turn this around and use quantum computers as "relatively macroscopic models" of the fundamental scale; see for instance the last section of my essay On the Foundational Assumptions of Modern Physics.
3. Have you thought about how this idea applies to Feynman's sum-over-histories method? In his 1948 paper, Feynman rederived Hilbert space, operator algebras, the Schrodinger equation, etc., by summing over "spacetime paths." One of the most vexing problems in QFT is evaluating the resulting path integrals. Information-theoretically, it seems that if you can ignore all but a tiny fraction of the Hilbert space, you might be able to organize the information in the path integrals in a more convenient way as well. Maybe this would produce nothing new, since that's basically the point of a lot of the existing techniques, but it's interesting to consider.
I wish you the best of luck with the contest! Take care,
Ben Dribus