Dear Karen and essay readers,
here are some lines of thought I would like to offer as worth thinking about them, since at least for me it seems that they are part of the problem to unequivocally answer the contest's question at all.
The demand to stop digging is of course the result of the assumption that our best theories are not considered to be fundamental. Your approach to infer from our reasons that they aren't fundamental to your list of certeria for a fundamental theory is therefore straightforward and self-confirming. The latter due to the fact that what makes our best theories appear to be not fundamental is the expectation that there should exist a unified description of physical reality.
This is another demand, albeit an understandable one from the viewpoint of determinism and physical causality (but maybe also from the viewpoint of philosophy). I therefore value your essay as to the point answering the contest's question, since the latter is formulated within the framework of physicalism.
Nonetheless, it is arguable that what we call "physicalism" is just a system of consistent relationships of some placeholders for phenomena we can't reduce to some more fundamental concepts by means of grasping the true reasons of why they "are what they are". All this is not too problematic, since we anyways know intuitively that at a certain point, we have to take some concepts and ideas simply as given. In a physicalistic framework, one wishes at the one hand that the placeholders I spoke of should finally considered as simply given, albeit there are other atttempts to explain them in non-classical terms as emergent properties of even more abstract entities like global wave functions or some geometrical considerations.
All those frameworks have in common that the physical realm should be a consistent unity, ruled by the law that any contradiction is impossible within it apriori. With this we arrive at a generalization of formal logic to the realm of natural phenomena. Since the abilities of our minds can - and must - in those frameworks also be considered as natural phenomena, it is therefore natural to conclude that nature must necessarily behave strictly logical.
Although there are many counterexamples for human behaviour not being logical, but somewhat irrational, these counterexamples may be explained by assuming that false assumptions lead to nonsensical results. So, after all, the human mind can be characterized as being governed by the laws of logics.
With this I would point to the only criticism I would make about your attempt to answer the question "what is 'fundamental'?". Since it doesn't answer how logical behaviour of nature should accomplish to generate some processes which we label as 'consciousness' to rightfully differentiate them from dead matter which mindlessly follows (magically?) just a verdict of some laws.
If nature is logical as reflected in our ability to think logically and nature is assumed to be a coherent unity, then it follows that there has to be a logical answer to the question why nature can at all at some point of its state of affairs become conscious about its own fundamental logicism. Albeit such a logical answer may not be within the reach of human beings, it would be somewhat surprising and illogical if it where so, since logical answers are defined as being principally graspable by logically functioning beings. The only way to avoid the demand that logical beings should be able in principle to find out such a logical answer to the fundamental question about the existence of consciousness may be that the logical network governing the fact that consciousness is indeed possible would be to deep and complex for human beings to grasp it without some help of computer analysis.
Since computer are bound to mathematics and data processing, it all would boil down to the answer that consciousness is a special kind of data processing. Since Gödel's result allow one to extend a system that is subject to Gödelian limits by a choice of whether or not one adds a new axiom p or its negation (not p), all boils down again to a choice between two mutually exclusive 'givens', two mutually exclusive logical options. If there is a reason for a certain kind of data processing becoming conscious at some point of its state of affairs, Gödel's results seem to imply for me that these reasons must reside beyond what we call the 'landscape of mathematics'. This landscape does only insofar make a real difference between consistent and inconsistent relationships as there are observers that make that difference. Hence, one could say that consciousness is fundamentally driven by a natural distinction between consistent and inconsistent mathematical relationships - what immediately contradicts that this distinction should be existent independent of some observers.
At this point I conclude that either the existence of consciousness is merely possible, or it is a fundamental necessity in the overall state of affairs we are trying to figure out as scientists or philosophers. In fact, there is a huge tension between a logico-phyiscalist's demand that nature should be overall logical (consistent) and the claim that consciousness is merely possible, but in no way necessary to occur at some time in the overall state of affairs.
I think that this tension cannot be resolved by defining a 'mathematical landscape' as the most fundamental level of ultimate reality, since in that case, mathematics should have the ability to distinguish between consistent and inconsistent relationships. If the latter would be true, there must be a kind of reason within that mathematical landscape, but according to the orthodox definition of mathematics, this reason can only be there in the form of some mathematical relationships, pointing to the whole class of consistent mathematical relationships.
Since such a pointer-relationship within the mathematical landscape must necessarily be itself a consistent one, we again end up with a self-referential truth about the superiority of consistent mathematical relationships that should be responsible for conscious beings to exist at all. By re-defining the consistent part of mathematics as physical worlds with observers in it, one ends up where this comment initially began, namely with the initial question how to justify physicalism as a logical unity, able to facilitate observers that are able to grasp such an assumed truth.
Could it be that, albeit the formal demand for ultimate reality being a logical unity is somewhat necessary to not undermine the very tool with which we come to some scientific conclusions (logic) and to not being left with fundamental contradictions (as is presently the case for the relationship of our best theories of physics), that we should suppose another "placeholder" to be existent at the very bottom / top of ultimate reality? I would characterize such a placeholder with the term 'truth', since this is what we are searching anyways. In fact, it is difficult for me to think about ultimate reality other than in terms of 'truths'.
If physical terms like energy, mass, time and space are indeed considered as fundamentally given, and if more mathematical terms like global wave function, consistency and inconsistency are also considered as fundamentally given, I see no reason why the term truth shouldn't also be fundamentally given. Moreover, without the latter, the former can never be unequivocally considered as being fundamentally given, since in the absence of some fundamental truths, only falseness and confusion remains. If 'truth' is solely a property of exclusively some physical state of affairs (as is similarily thought of about the concept of 'information') in an orthodox sense, these affairs themselves are hard to justify objectively, even within a framework of a 'mathematical landscape' without arriving at some self-referential self-confirmation of some premises one made at the very start, not to mention or to justifiy objectively the existence of consciousness and its ability to make some inferrencing about the world and itself.
It seriously seems to me that all we have at the end of the day is our conviction that some fundamental truth must exist as an - form the frog's view - highly abstract matter of facts. In light of a scientific as well as a common sense perspective, I would say that such a highly abstract level of reality can be justified by our hitherto gained experiences with it. However, I am perfectly aware of the fact that what is 'highly abstract' for one observer may be trivially concrete for another observer and vice versa. But I think maybe the distinction between abstract and concrete are the wrong criteria to look at what many of us consider as fundamental truths about the world. At the end of the day, such truth simply is and it is true that it simply is. This seems to me to be the only sure thing I can think of by contemplating the essay contest's question and its possible answers.
Sorry Karen for such a long comment on your essay page. Simply ignore it if you cannot make sense of it. It is just the attempt to stimulate some more 'philosophical' discussion during the contest for those who like to discuss these things in more detail.
I also apologize to those who seek some truth in a more physical description / explanation of certain physical phenomena. My comment here is not ment to undermine any such attempt, and indeed it cannot, since what finally counts is surely the truth.