Well, yea that's what I'm leaning towards. The laws of physics themselves need not govern the machine (Turing or otherwise), they are effects we observe, us being other effects. The laws of physics and the observers both are part of the output.
Like playing an online roleplaying game and inferring what the program can actually do or what resources it takes, when all you can access is "how high can my character jump" and other in-game rules. The rules regarding the jumping, and any limits the program chose to confer to the jumping behavior are not indicative of the resource requirements and efficiency of the underlying system. Is calculating the jumping easy or hard for the computer? How would you know as a character? The output, again, is a bad judge, take this example:
Imagine using an old Intel 386 system which you rigged into running the latest FPS shooter. It may only output one frame every few hours, but as a sentient character inside that game you wouldn't notice. Things would be "smooth" for you because the rules would be unchanged from your point of view.
We can only say that given our knowledge of the laws of physics, the TM running the universe doesn't output anything which seems like an efficient NP-problem solver, whether the program contains one, or the correct hardware abstraction running it uses one, is anyone's guess. (The "contains one" probably isn't anyone's guess because of Occam's Razor considerations.)
If this is all confused (it may well be, was mostly a stray thought), I'd appreciate a refutation.
If I understand correctly you're saying that what is efficiently computable within a universe is not necessarily the same as what is efficiently computable on a computer simulating that universe. That is a good point.
Summary: Intelligence Explosion Microeconomics (pdf) is 40,000 words taking some initial steps toward tackling the key quantitative issue in the intelligence explosion, "reinvestable returns on cognitive investments": what kind of returns can you get from an investment in cognition, can you reinvest it to make yourself even smarter, and does this process die out or blow up? This can be thought of as the compact and hopefully more coherent successor to the AI Foom Debate of a few years back.
(Sample idea you haven't heard before: The increase in hominid brain size over evolutionary time should be interpreted as evidence about increasing marginal fitness returns on brain size, presumably due to improved brain wiring algorithms; not as direct evidence about an intelligence scaling factor from brain size.)
I hope that the open problems posed therein inspire further work by economists or economically literate modelers, interested specifically in the intelligence explosion qua cognitive intelligence rather than non-cognitive 'technological acceleration'. MIRI has an intended-to-be-small-and-technical mailing list for such discussion. In case it's not clear from context, I (Yudkowsky) am the author of the paper.
Abstract:
The dedicated mailing list will be small and restricted to technical discussants.
This topic was originally intended to be a sequence in Open Problems in Friendly AI, but further work produced something compacted beyond where it could be easily broken up into subposts.
Outline of contents:
1: Introduces the basic questions and the key quantitative issue of sustained reinvestable returns on cognitive investments.
2: Discusses the basic language for talking about the intelligence explosion, and argues that we should pursue this project by looking for underlying microfoundations, not by pursuing analogies to allegedly similar historical events.
3: Goes into detail on what I see as the main arguments for a fast intelligence explosion, constituting the bulk of the paper with the following subsections:
4: A tentative methodology for formalizing theories of the intelligence explosion - a project of formalizing possible microfoundations and explicitly stating their alleged relation to historical experience, such that some possibilities can allegedly be falsified.
5: Which open sub-questions seem both high-value and possibly answerable.
6: Formally poses the Open Problem and mentions what it would take for MIRI itself to directly fund further work in this field.