Hi Alexei---
Nice essay, quite clearly written. It still doesn't make me feel quite comfortable with the arbitrariness of where the cut is put. I do feel there is something about the quandaries of quantum theory, for instance this arbitrary cut, that is "epistemologically natural", but I don't think we yet have enough of a prinicipled understanding of it. I have some hope that "reconstruction", not necessarily in the usual operational framwork, but thinking also more deeply about how measurements are actually carried out using physical resources, and in space and time, might get us a better understanding, not just of the structure of the theory, but about what aspects of reality, and our epistemological immersion in it, are manifested in the structure of quantum theory. I quite agree that that does not mean we should expect an account in terms of standard notions of causality or the nature of external objects, some of which concepts may be "wired" in our brains and misleading with respect to our now far-flung physical investigations and activities. I tend to think that your general view that "it from bit AND bit from it" are both important in understanding the nature of quantum theory, is correct... but we may also have to transcend (as I mentioned in my essay, and as Marcus Appleby discusses at greater length in http://arxiv.org/abs/1305.7381 , which I recommend highly) the notions of "it" and "bit" (both of which Appleby would perhaps describe as Cartesian).
So, you give a compelling picture of "the current situation in quantum theory" and epistemology... but I still feel that the situation you describe is puzzling and augurs further physical and philosophical discoveries, which indeed may turn out to be one and the same discovery...
I enjoyed your thought-provoking essay... excellent job.
Howard