I think it is far more reasonable to operate under the idea that progress might go on forever then the idea that there is a bottom, especially a bottom just barely past what we already know. Seems to me like what you are suggesting is the default position most people throughout history incorrectly suggested.
Also, if there is a bottom, understanding the concept of 0 and 1 doesn’t mean you automatically understand all the concepts which a computer can encode in data. “The concepts that can be generated from 0 and 1 will slow down because of physical limitations” makes no sense to assert.
The bandwidth a single human can learn at is very very tightly constrained. The bandwidth an ASI could generate new meaningful data at is just incomparably larger. No matter how good the explanation is there is a very obvious problem of scale.
How fast can you read with comprehension? Now how fast can you read with comprehension when you don’t know the definitions of all the words? How fast can you read the definitions of the new words in order to move forward with learning the main concept? How many new words are in those definitions which require you to also read more definitions just to understand the parent definition? How much progress has been made on other new concepts while you spent all this time reading? How many definitions have changed before you even get back to the main concept you were learning?
The story itself is entirely about how this doesn’t matter. I also very directly addressed this in more detail in my last reply.
The point I am presenting is one that is more fundamental than all these various topics you are trying to bring in which are not part of my story or my replies. My story is about something that happens somewhere in the path of all outcomes, good or bad. I am unsure why you are trying so hard to dismiss it without addressing my replies, so sure it only happens after success, and so sure there is no practical reason to be thinking about it when trying to understand what is happening, what might happen.