I wrote the following in my essay blog:
In the end there is a bit of a duality here, or a dialectic of sorts. I think that what is measured in physics is discrete. We measure certain observables that have finite values, and quantum physics in particular bears this out pretty seriously. The continuum aspects to physics is pretty much a mathematical issue. Experimental data does not have any reference to infinitesimals or infinities. The calculus is based on the limit where the difference between two points becomes infinitesimally small. Physical experiments have not direct bearing on this.
It is the case that homotopy does involve curves that are smoothly deformed into each other, but this is used to get the value of the homotopy group that is usually Z_2 or Z, where Z could be interpreted as just unbounded and infinity is avoided. The homotopies are then more directly related to the actual measured aspects of physics.
Spacetime is a bit odd with regards to this. The Planck scale does indicate that one can't isolate a qubit in a region smaller than sqrt{G徴/c^3}. The Heisenberg microscope argument indicates that if one tries to isolate the Planck unit of area a quantum state is contained that it will scatter violently. This illustrates that using a large value of momentum to isolate particle demonstrates that spacetime has a discrete structure. This has an interpretation in the generalized uncertainty in string theory. On the other hand the FERMI and Integral spacecraft measurements of distant burstars found no dispersion of photons predicted by loop quantum gravity. This is a discrete form of quantum gravity, and it appears to be in trouble. In this experiment a very large ruler (measurements out to a billion light years) found that spacetime appears very continuous. This suggests a more general form of the uncertainty principle, where at one limit spacetime is continuous, and on the other limit discrete.
The problem is that physics is not completely discrete or continuous. One of these FQXI essay contests went into this. The main thrust of my essay though is that the physical observables we measure, and physics is an experimental science, are discrete. Mathematics has what I might call a "body" and a "soul." The body is what is computed, and can be computed on a computer. The soul is all of the continuum stuff, calculus, infinitesimals etc, which have a weaker connection to experiments. I am not committed to any metaphysics about whether the soul exists or not. That is to say I have no belief or lack thereof with respect to what some might call Platonism.
Cheers LC