I'm not sure how your "the qualia of observing a qualia is the qualia itself" is different from my "a qualia observes itself".

The difference, I think, is that there is an observer having the qualia, rather than just a qualia happening by itself without a qualia-haver to have it.

This is starting to feel very nebulous and free-floaty. I feel like the words we are using are not locking on very strongly to robust concepts in my mind. It may not be a productive line of discussion.