This is an amazing dreamscape. Worth every second to read.
The phrase that caught me hard was "interpolate him into the real world". The reason from the perspective of an AI/ML guy is that perceptions, the basic model we have for brain computation, are in fact, strictly and numerically, interpolation engines.
The incoming neural firing is weighted and summed which is exactly what interpolation is. From that the perceptron decides whether some information is worth passing along with effect to other interpolating perceptrons. Indeed, we have every evidence in the world now that the brain is a giant collection of interpolation functions that mimic the real world, including all the worlds that could be as well.
Which ones we choose to actually live in at the moment is really something our brains choose. The circularity is, as he describes, forever there and not there. Very nice.