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Dear Peter,
I reread your excellant essay. I think that Physics is a bilingual thought process involving both language and mathematics. Sadly enough, most people fall on one side or the other and don't do a good job of balancing language and mathematics. As a mathematics-conscientious-objector yourself, you do a good job of introducing just enough mathematics (such as the index of refraction and frame-of-reference transformations) to tie into physics formality. From a language perspective, your essay was comparable to other great language presentations, such as Julian Barbour's and Tom Ray's, and I enjoyed your pictures.
There was a point near the beginning of your essay that confused me slightly. You said "As it slows down it shifts slightly to the blue (as Rayleigh scattering also turns the sky blue)." Putting these two very different phenomena together as if they are related is confusing. The light is blue-shifted as it approaches a stronger gravitational field (the Earth's vs. space), but Rayleigh scattering removes more blue than red light because blue wave-lengths are shorter than red wave-lengths, and therefore have a shorter interaction distance in air.
Figure 1 does look a lot like a hot, fresh doughnut plus a bow shock (my wife, daughter and I ate breakfast at Krispy Kreme Doughnuts the other day - I don't eat there often because I'm usually watching my calories, but it is fun every once in a while). I finally put together a paper model of a lattice-like torus with Buckyball symmetries. Now I'm ready to cut up a couple of soccer balls...
You quoted Minkowski's "endlessly many spaces". If each bus is a different "space", or a different frame of reference, and the photons get on and off of buses with different local speeds, then this can explain your view of Relativity. My math background (I only minored in Math, but most PhD Physicists are exposed to lots more Math) wants to use "delta" notation to represent this, and then convert it into a differential and/or integral equation. It would probably look a lot like the Principle of Least Action.
You say that your model does not require an "aether". I agree that the Classical aether is dead, but I wonder what effect the "vacuum" or "Dirac Sea" have on large-scale "continuous" effects. In the case of the speed of light, we have c=1/SQRT(eps*mu) where eps and mu are physical properties of the "vacuum". I'm not sure of the implications regarding a vacuum-like "new-aether" - see Constantin Leshan's essay.
Good Luck in the contest & Have Fun!
Dr. Cosmic Ray