Hi Philip,
Though ''observational evidence for the existence of black holes in our galaxy is highly convincing'' nothing indicates that a black hole actually does have an event horizon. If nothing can escape from behind the horizon, no photons nor gravitons, then you'd say that the mass inside the horizon cannot be expressed as gravity outside of it. If an outside observer cannot interact with what's inside of it so to him all positions within the horizon are physically identical, then you'd say that its diameter cannot be non-zero, that is, if a physical spacetime can be defined as a space where the lengths of rods and the pace of clocks is different at different points, however slightly.
Another point is that though energy is quantified, that does not mean that there is a universal minimum building block of energy or space.
According to Planck's law, in blackbody radiation there are more energy levels per unit energy interval at higher energies, temperatures, so we need more and more decimals to distinguish successive energy levels, the energy gap between subsequence levels can become arbitrarily small: though energy is quantified, there is no minimum limit to the size of the quantum, so the Planck length and Planck time etc. have no special significance. The Planck constant h is like the number 1 in mathematics, encompassing all values between 0.5 and 1.5, so if we can improve the accuracy of the measurement of the Planck constant at a higher energy and can add a further decimal to it, then we can write that number as 1.0, which encompasses all numbers between 0.95 and 1.05. So if in our equations we set h = 1, then every time we add a decimal to the Planck constant and set it again at 1, then we increase the magnifying power of our microscope with a factor 10.
Though there is no smallest distance, to what extent spacetime itself is detailed somewhere depends on the energy density in the area: the higher, the more detailed the spacetime area is or the higher the 'information density' is, whereas the emptier it is, the less defined it is, the smaller its information content is.
Though ''Energy conservation in general relativity is real, exact, non-trivial and important'' indeed, the problem is that its creation at the big bang (if and when we actually do live in a big bang universe) constitutes a huge serious violation of the same law.
As to ''Redundancy is in fact the key ingredient of the holographic principle'', if the distance and relative motion of particles affect the properties they 'observe' each other to have, the 'bits' they exchange, then a particle at all times is completely informed about the nature, position and motion of all other particles within its interaction horizon, its universe. A particle then is like a hologram fragment which contains all info of the entire hologram: like the information of a hologram fragment is vaguer as it is smaller, the information a particle carries or represents is smaller, less definite as its properties are less defined, that is, as its energy is smaller, as its interaction horizon, its universe is smaller, less defined, in which case there's no redundancy.
As the observer and his observational devices are part of the particle's universe so are themselves depicted in the hologram fragment he inspects, he cannot but affect what he observes as he involves it in an observation interaction. If an experimenter can affect whether the answer he asks a system with some device is yes or no, then answers aren't as unequivocal, as absolute as Wheeler wants to believe is possible.
''But no amount of philosophizing can tell us if this is how the universe works. There is no point in asking where the information comes from, or where it is stored.'' If the universe would only contain a single charged particle so it wouldn't be able to express its charge, then it cannot be charged itself, meaning that a property (it) only exists, is preserved in interactions (in the exchange of bits) between charged particles, so the bits are no more fundamental than the its.
By regarding the universe as an ordinary object which has particular properties as whole, as 'seen' from the outside, so to say, we in fact say that it owes its properties to something outside of it, interacts with, i.e., that it has been created by some outside intervention, in which case the holy grail Wheeler is looking for is beyond his reach.
I think that the universe can only be comprehended from within, if we realize that particles and particle properties, its, are as much the cause as the effect of their interactions, of the exchange of bits.
Regards, Anton