I agree with you, and pjeby, who made similar points: the complexity of actual social games is higher than they appear on the surface, and much signaling is about signaling ability itself. But these insights also imply that the value of "running social interactions in software" is limited. Our general purpose cognitive machinery is unlikely to be able to reproduce the throughput and latency characteristics of a dedicated social coprocessor, and can really only handle relatively simple games, or situations where you have a lot of time to think. In other words, trying to play mating games with an NT "in software" is kind of like trying to play basketball "in software".
Your argument is fallacious because it rests on overstretching the software/hardware analogy. Human brain contains highly reconfigurable hardware, and if some particular computations are practiced enough, the brain will eventually start synthesizing specialized circuits for them, thus dramatically boosting their speed and accuracy. Or to say it the traditional way, practice makes perfect.
Whether it's throwing darts, programming computers, speaking a foreign language, or various social interactions, if you're lacking any experience, your first attempts wil...
Followup to: Do you have High-Functioning Asperger's Syndrome?
LW reader Madbadger uses the metaphor of a GPU and a CPU in a desktop system to think about people with Asperger's Syndrome: general intelligence is like a CPU, being universal but only mediocre at any particular task, whereas the "social coprocessor" brainware in a Neurotypical brain is like a GPU: highly specialized but great at what it does. Neurotypical people are like computers with measly Pentium IV processors, but expensive Radeon HD 4890 GPUs. A High-functioning AS person is an Intel Core i7 Extreme Edition - with on-board graphics!
This analogy also covers the spectrum view of social/empathic abilities, you can think about having a weaker social coprocessor than average if you have some of the tendencies of AS but not others. You can even think of your score on the AQ Test as being like the Tom's Hardware Rating of your Coprocessor. (Lower numbers are better!).
If you lack that powerful social coprocessor, what can you do? Well, you'll have to run your social interactions "in software", i.e. explicitly reason through the complex human social game that most people play without ever really understanding. There are several tricks that a High-functioning AS person can use in this situation: