"There are no correlated events that need to be explained."
Rob, all correlated events beg explanation, or else there are no patterns at all in nature, just acausal random and probabilistic distributions of events.
Because pairwise correlations do exist, however, your emphasis on "single bits" of information is wrongheaded; you maintain that the decision of what to observe rests with the observer -- which is simply the conventional view of quantum mechanics -- and does obviously invoke a pairwise correlation, between observer and observed.
In an objective reality, however, Jonathan's explanation of the role of space in the parsing of events is quite correct; pairwise correlations result from correspondence between "inside" and "outside" points (with no collapse of the wave function), which is well known in topology, and made rigorous in Joy Christian's measurement framework.
