Dear John Merryman,
You have written a very brief article but the points to be understood from it have deep depth and make one to ponder over them. The essence of your argument can be understood if you go through the biology section of my essay, where I have discussed how living organisms came in to existence and evolved and I have discussed the notions of information, knowledge, intuition, mind (brain), environment, consciousness and other related concepts. So, please, go through my essay (http://fqxi.org/community/forum/topic/1827) and try to visualize how the theme of your essay follows from it. The distinction between the classical world and the quantum one is clearly stated when you say "there is no middle ground view that effectively encompasses both. Those Bits are what we know of It." There by establishing the relationship between It and Bit. You have rightly pointed out the distinction existing between both worlds when you say "this separation goes more to the nature of knowledge, than of reality"; thus showing of our ignorance of a unified theory. The origin of the concept of Time and its relation to energy is notable. Regarding the origin of the concepts of knowledge, brain, reality etc. is to be understood, I feel, from my essay and then to be compared to what you have said on them in your essay. Feel free to post your comments on my essay in my thread. Since the theme of your essay is based on mine I have rated your essay with maximum honors. Thanks for producing a thought provoking brief article.
Best wishes,
Sreenath