I found your essay very interesting on many points. I like the notion that time is a factor common to both It and Bit. In my view, this leads to the conclusion that It and Bit are correlated, whereas whatever other relationship they may have is more open to conjecture.
As you say, the universe can't be all Bits, and we must reject 'computationalism'. However, the universe is a projection of our processes of cognition - or more accurately, it is the mind that takes continuous imprints (information processing in nature) of the physical world, and stores them, according to the complexity of the species, over the evolutionary time plane.
I find that this is well illustrated by your metaphor of the DVD.
In my essay, the concept of correlation is shown to be the defining relationship between information and the field of observation; otherwise, and I think this is an undercurrent in your work, we're caught up in a variety of problems that are usually founded upon subjectivity: The proposition that we, and the universe are synchronized computers, for instance, is either void of meaning (creating a universe that cannot be distinguished from ourselves), or it illustrates correlation.
A more direct interaction between Bit and It is manifestly impossible.
I think you'll find my Paradigm agrees with your thinking. It shows how the correlation between Bit and It occurs as a result of our Cosmic system's interaction with the General Field of Cosmae.
I describe our four fundamental forces as being the 'splitting up' of a 'Gravitational-Magnetic Force' that comes from the energy field that envelops our Cosmos - a Force that simultaneously affects each of its Particles individually, and sub-divides them into the three groups that define our Inorganic, Organic, and Sensory-Cognitive entities.
Both the Cosmos and the Observer are similarly affected by this Force, so that it maintains them in Correlation over billions of years.
Thus, the 'single-field' Cosmos (consisting of the Observer viewing an environment (or universe) founded upon one field), is replaced by a three-field structure that includes the Observer and therefore accounts for our participatory Cosmos - and for the way the Cosmos 'stores information'.
I'd love to hear what you think of this.
Lastly, that consciousness is not information processing is absolutely correct. Is it not an imprint the mind takes of itself contiguously with its imprints of the biological and inorganic realms? And, further, is it not a contributing element to our evolution?
You say: 'If there is a unified world picture, consciousness belongs to it in some other way.'
Then, let's consider this: If the mind, the organism, and the inorganic elements of the universe are distinctly produced by a General Field of Cosmae, and held in a Correlated relation by this Field, is it not possible to speak of the General Field as exerting an Evolutionary Impulse upon all three spheres?
In this case - please tell me if you agree - consciousness would be the correlating element between the General Field and the organic and inorganic components of the Cosmos.
Many thanks for this serious work, and all the best!
(Though my post is appearing as anonymous I am a contestant - John Selye, 'The Correlation of It and Bit in a Cosmic System' - I hope to fix this problem soon!)
John.