Dear Ian, what a wondeful essay and i am learning new things from it. but may i differ with your premise that bit from it. i argue that bith it from bit and bit from it are correct but a better way is that bit is it and it is bit or bit = it. You wrote: "Condition 1 (Physical determinism) Let u ≡ s be the ideal element on the domain of physical measurements that provide information about the universe. Then, if u is static and either N is finite or u is predictable then, vmin ≤ v ⇒ v → u.
A hypothetically omniscient being who happens to be in possession of qmin ≤ qn bits, where qmin : u → vmin (i.e. possesses enough bits of information about the universe to fully predict its future states), is known as Laplace's demon." Now if It comes before bit, or bit from it, then how It as this static It (u) generates v(non-static It)? Static it as in the perfect thermodynamic equilibrium will not generate work or any activity at all by definition. But of course you can bring QM that says by quantum fluctuation as Wilczek pointed out in his "time crystal" invention that even in a perfect "heat death" scenario his time crystal still ticks! Wait a minute, this implicitly imply that nature is a Qbit because it generates "quantum fluctuation" that means it is in the state of superposition until observed and it will take a position as Schrodinger's dead or alive cat or simply as u or v. This shows QM is hopelessly Qbit(00,1,-1) in its nature. It cannot be a static it. A static it cannot exist even in principle. Even if It can exist by itself as it alone, dead as dead means non-existence then by its very definition of being non-existence that this It alone ranger by itself does not exist by even in Aristotlian logic of A = A or Plato's Form/Copies or by its nemesis non-linear logic that A ≠ A of Heraclitus or Protagoras or Fu Xi I-Ching, Laozi and Zhuangzi. Therefore, any Existence must be digital bit/qbit in its very nature that cannot be reduced further than one Qbit as the It: bit = it. In other words, it is necessarily, bit is it and it is bit. As yourself pointed out that u cannot be static, then if it is not static, it is necessarily more than one It in existence, this can only lead to Holmes' one conclusion that this It is Qbit!: "Hence, contextuality directly leads to an ever-increasing entropy for the universe, i.e. the second law of thermodynamics is a direct consequence of quantum contextuality12 and, because u is not static, the universe as a whole must not be physically deterministic!". If I may put forward my KQID theory to paraphrase Phytagoros: all things are one Qbit. This Qbit is one singularity Qbit Multiverse rather than Wheeler's one electron universe. Finally, yes, there is no extra bits or its in our universe. But, we have so much more qbits ≥ 10^1000 qbit/second in our Multiverse that has a beginning but no ending to obey the Second Law ΔS ≥ 0. Please if I may request you to look at and rate my essay Child of Qbit in time. KQID is so simple and so obvious under our nose literally but as the great Lord Keynes observed to escape from our own accepted worldview is extremely hard to do even by having an open minded set of mind. Sorry to write a such long comment, I really enjoyed and be simulated reading your profound thought. Best wishes, Leo KoGuan