Hi Olaf,
Thank you for your investigation into the nature of information. You wrote:
> How does layer 0 look like to someone who's lowest level meaningful objects are from layer 1?
One way to look at such layers is through the lens of software architecture. In such an architecture, each layer defines primitive operations and the processing environment. These are implemented by the lower layer and used by the upper layer. From the perspective of algorithms in the upper layer, the implementation of primitives is quite mysterious. Each such operation "just happens". Because of this, the lower layer can be hardware or a software simulation of hardware, without the upper layer being able to detect the difference. The implication of the "information hiding" aspect of architectural layers is that upper layers can know only what lower layers choose to reveal.
> If we have to decide between "It from bit" and "Bit from it" it is clear that we come down on the latter: Bit from it.
If we take "It" to mean the material level of reality, then "It from Bit" might mean only that there is a level below the material. How many levels there are, and of what kind, could still be open. "Bit from It" seems to assert than material reality is at Level 0, which seems open to debate.
> Naked bits require a dictionary that gives them meaning.
Yes, but a dictionary is just information, more bits. It does not have to contain (even pointers to) Its. Bits, for example, could represent numbers, and be involved in mathematical calculations that do not need direct referents to anything material (i.e. Its).
> One of the perennial problems in philosophy is the problem of consciousness. One reason consciousness is puzzling is that there seems to be an infinite regression present. It feels like there is someone observing the thoughts inside our head but then what about the thoughts of that someone?
There is a distinction between the Mind and the thought, and so what we feel when we feel conscious might be Mind which is holding thoughts. If the level of Mind is lower than the level of Matter, then it is a natural place for consciousness to observe the material world, without being constrained by physical laws.
> Our view of information suggests that there should be a new paradigm of computation that we might call emergent computation.
In my essay Software Cosmos I construct a computational model for the cosmos. While the focus was on the layers above the material level, the idea of treating the cosmos as a software simulation allows us to ask how it is layered. The result is that layers deeper than the level of Matter can have the attributes you describe. I hope you get a chance to take a look and let me know what you think.
Hugh