Good post, thanks for making it. Besides the issue of whether Intel gets some of the recursive benefits, there is also the question of how FOOMable Intel would be if its engineers ran on its own hardware. Since Intel is embedded in the global economy and chip fabs are monstrously expensive undertakings, speeding up certain design issues would only go so far. I suppose the answer is that Intel will shortly invent molelcular nanotechnology but it's not really clear to what extent Drexler's vision or a completely flexible variant is even possible.

Still, your point here was to illustrate mathematically the way "recursion" of the type you are talking about increases growth and you did a good job of that.