If your adversary can read or write bits in your hardware, then what is the purpose of using cryptography?
Side channel attacks on hardware are not rare. For example, an adversary might have a way of measuring the power consumption of your CPU as it does RNG calculations. This is not quite the ability to "read or write bits in... hardware", but it is a viable attack to gain information about your, ahem, random numbers.
Sure, but at this point they can also gain information on your keys or the data you wish to encrypt.
One of the most interesting debates on Less Wrong that seems like it should be definitively resolvable is the one between Eliezer Yudkowsky, Scott Aaronson, and others on The Weighted Majority Algorithm. I'll reprint the debate here in case anyone wants to comment further on it.
In that post, Eliezer argues that "noise hath no power" (read the post for details). Scott disagreed. He replied:
Eliezer replied:
Scott replied:
And later added:
Eliezer replied:
Scott replied:
And that's where the debate drops off, at least between Eliezer and Scott, at least on that thread.