The point being made seems to be the contradiction of a common AI-theorist, futurist position.

That position being that once a computer algorithm of effective AI IQ of 100 is produced, it can increase it's intelligence to arbitrary levels by the addition of additional hard-drive space, ram, and processing power.

IMO the analogy slightly fails. It fails to include anything analogous to the increase in ram, which is a very important factor, as it allows complex concepts to be dealt with as a whole.