Complete traversals of a set of whole-tone-related keys are incredibly rare in music this early; I don't know of another example and would not be that surprised if one doesn't exist. You're right that such a piece seems easy in principle, but that's from a current viewpoint. So I think that Hofstadter may in part be implicitly relying on some knowledge of the early-eighteenth-century context when he stresses how unusual the piece is.
(There is actually also a technical reason why this loop is so strange -- it has to do with what music theorists call "crossing the enharmonic seam" -- but Hofstadter doesn't appear to be referring to that.)
It is a neat trick, and not something that happens often, but I would guess that's because it's not useful as anything other than a neat trick. I'm not seeing the eternal golden braid in it, is all.
Actually, if Bach had kept the pattern intact without "crossing the enharmonic seam" it wouldn't be much of a loop at all; the piece would end up in B# minor after six repetitions.
(edit: sp.)
Recently I began to write a review of Hofstadter's Godel, Escher, Bach, until I realized that the book defied summary more than all the other books I had previously said "defied summary." Thus, I gave up on reviewing the book after not too long. I present my discarded review below just in case it motivates someone else to pick up this masterful tome and let it enrich their life.
Of Hofstadter's GEB, Eliezer once wrote:
It's easy to see GEB's effect on Eliezer's writing: the "concrete, then abstract" pattern, the koans, the puzzles, the conversational coverage of technical concepts in math and computer science... it's all here in spades in GEB.
What GEB Is
In the preface to the 20th anniversary edition, Hofstadter clarifies what GEB is and is not. It is not about how reality is "a system of interconnected braids." It is not about how "math, art, and music are really all the same thing at their core." Instead, says Hofstadter:
A Musico-Logical Offering
Hofstadter opens with the story of J.S. Bach's Musical Offering for King Frederick, which contains a particular canon that sneakily shifts from one key to another before its apparent conclusion, and when this modulation is repeated 6 times, the piece ends up at the original key but one octave higher. This is our first example of a "Strange Loop":
Other examples occur in the drawings of M.C. Escher, for example this famous one.
The liar's paradox (e.g. "This statement is false") is a one-step Strange Loop. Related to this is a Strange Loop found in the proof for Godel's Incompleteness Theorem, which states, roughly:
Before Godel, Russell and Whitehead tried to banish Strange Loops from set theory in Principia Mathematica. But Godel's theorem showed
The goal of the book is to explain these Strange Loops in more detail, and how they may explain how animate beings arise from inanimate matter.
Meaning and Form in Mathematics
After a tutorial on formal systems, Hofstadter argues that
The vast majority of interpretations for a formal system are meaningless, but if an isomorphism can be found between the formal system and some piece of reality, that isomorphism provides the symbols their "meaning."
But you may discover multiple isomorphisms, and thus the symbols of a formal system may have multiple meanings. It makes no sense to ask, "But which one is the meaning of the string?":
...