Mr Smith
There seems no doubt that the vast majority of physicists either openly or, when pressed, will say that we really have no understanding of what we call time, or any definite idea of how it should be treated in a fundamental theory. One consequence of this of course is the "problem of time", where we have two incompatible treatments in QM & GR, one of the barriers to a unified theory. The correct treatment may be revealed when the much sought after "GUT" theory of quantum gravity is finally discovered and I believe it will be, hopefully in our lifetimes!! I think that Lee Smolin himself & others like Fotini Markopolou are doing some promising work in this area by looking at "spacetime" as being "emergent" from more fundamental dynamical entities.
Whatever "emergent" properties a quantum theory of gravity derives, will, I believe, still only leave us with a "locally" valid notion of "time operators" internal to a given system or state which will hopefully for us, be describable as observables in relative configurations! Globally, a model of "time" as configurations may then perhaps be on a better footing to be "built up" from this fundamental description.
I have actually just noticed again your "elephant" analogy in footnote 3 of your essay. This is very descriptive & certainly can apply locally for co-moving observers in an inertial frame, but, as you also mention, observers at large spacial or velocity separations would have very different views of a configuration as it would apply to any notion of a particular time (eg. Einstein's "lack of simultaneity"). In relativity, Lorentz transformations can be used to relate one frame to another with time being one of the coordinates. So I guess we would need something similar that could relate the configurations purely in spacial terms within the spacial & "velocity" boundaries of our evolving configuration space? Whether or not the Universe is spacially finite or the speed of light was shown to vary in some way would impact on this view also.
Although I have not completed my list of guiding principles etc due to time constraints, perhaps now is a good time to state at least a few important ones. So here goes:-
1. Background independence (A weakness of String Theory & a strength of Loop Quantum Gravity type theories?)
2. Only relationships between objects/observables in evolving configurations exist.
3. Apparent "time" is describable only by these configurations, as constrained by relativistic effects.
4. Prior "times"(configurations) as stored in the memory of conscious observers, only exist once & therefore can never be "accessed" again. (Requires a disproof of GR "closed timelike curve" solutions?).
5. Feynman's ideal of redefining all time quantities in spacial terms needs to be incorporated somehow.
I wonder whether Lev Goldfarb's ETS scheme can provide new insights into any of this?
Cheers for now!