Yuri,
Although I was unaware of that particular paper, I have known that Gerard t' Hooft does not accept the current nonsense of non-real, non-local interpretations of quantum mechanics. I say nonsense not as an insult but as a fact. No one can make physical sense of reality as currently interpreted, with strings and branes, many-worlds, a multiverse, 9-to-26 dimensions, supersymmetry, over a dozen 'particles' that have not been detected (and, I predict, won't be), as well as the 'holographic principle' and literally hundreds of 'quantum fields' for which there is no support.
t' Hooft is only one of many physicists who rejects this nonsense. Last week at the Hofstadter Lecture at Stanford University several professors admitted that they had qualms about quantum mechanics. Unfortunately, while t' Hooft, and Murray Gell-Mann can afford to challenge the orthodoxy, the politico-social pressure to fall in line is greater than many can resist.
As for the specifics, t' Hooft was wrong about 'massless neutrinos', but neutrinos in my model do have mass. I do share his preference for a classical continuity underlying reality without believing, as he does, that we need to go to the Planck scale for this. t'Hooft believes that "certain versions of hidden variable theories can--and must-- be revived." Also, unlike the current religiously held beliefs that "information is never lost", he believes that "dissipation of information plays an essential role." And unlike most attempts, he begins with strictly continuous and differentiable classical field theories and shows that an effective Hilbert space emerges from a statistical description of the solutions. Quantum states are simply mathematical devices in his theory.
t' Hooft's earlier attempts led to space time and matter being discrete. In my theory only 'action' is discrete, and QM can be derived from classical physics. t' Hooft claims that in order to make information dissipate in continuous theories it may be necessary to add discrete degrees of freedom. In my theory this may correspond to Planck's constant as the 'unit' of free will to act locally.
Additionally, he models an example four-state system with a deterministic evolution law as quantum states in a manner similar to my treatment in 'The Automatic Theory of Physics'.
So I got a lot out of reviewing his paper, and thank you for the link.
Edwin Eugene Klingman