Dear Edwin,
I tried to carefully read your paper. Let me note first some of its strengths: You have a gift for expressing yourself lucidly, there are several very clear and nice-looking diagrams to help illustrate your points, and you do raise some interesting points, particularly with respect to what you call "Bell's hidden constraints."
I am baffled, however, that though the SG experiment features very prominently in your paper, you did not, as far as I can tell, address at all that aspect of the experiment for which it is most famous, namely, that if you separate out spin up and down beams along some axis by means of an inhomogeneous B-field, pass one of the beams through a second inhomogeneous B-field with a perpendicular orientation and pass one of those through a third B-field with the same orientation as the first, you obtain two beams one of which has a spin that should have been excluded by the initial separation.
Any local and/or realist account of entanglement phenomena has to be able to explain this empirical result, otherwise it is dead on arrival. The absence of an explanation of this in your argument makes it difficult for the reader to conclude anything other than that it cannot explain it, and I think that among those who have thought about this issue a lot this will dramatically diminish the persuasiveness of your argument.
The most charitable interpretation I can attribute to your argument is the passage in which you mention a work by Potel (with which I am not familiar), presumably to support the notion that the quantum mechanical model of the SG experiment (i.e. spin states in 2D Hilbert space) does not fully capture what is really going on. But if you want to make that case, then the burden is on you to show exactly how this failure of modeling the empirical result leads to an explanation of the observations by your model. You did not do this.
I do not relish pointing out weaknesses in other people's arguments, but I noticed a conspicuous absence of a discussion of this elephant in the room in the above posts, and someone has to point it out.
Let me close by mentioning a point on which we share the same viewpoint, namely, I think that there is no true non-locality in nature. However, I do believe that "realism" however fuzzy a concept it is right now, has to be sacrificed. I will touch on this issue in the essay that I plan on submitting to this contest, and I'd expect nothing less than criticism as candid as mine.
Best wishes,
Armin