"Because there’s a theorem (Bell’s Theorem) that says that unless there’s instantaneous non-local propagation of information, no such “hidden variables” model can reproduce the quantum mechanical results that are observed experimentally."
Wolfram's continues by saying he is allowing instantaneous non-local propogation because network nodes have no coordinates; coordinates (and dimensions themselves) arise as a result of how nodes are connected.
"And even though the network may mostly correspond on a large scale to 3D space, it’s perfectly possible for there to be 'threads' that join what would otherwise be quite separated regions."
He has changed the definition of locality.
www.scottaaronson.com/papers/nks.ps
This is getting out of my depth, but isn't that basically what Loop Quantum Gravity proposes?
Also, physicists don't generally take Wolfram's claims about how cellular automata are related to quantum or classical gravity or anything else in fundamental physics very seriously. A New Kind of Science cites very few sources and makes it seem like everything in there is new, which isn't the case. There was loads of criticism about that when the book was released. Nonetheless, it's an interesting idea and if something useful came from the work it would be good.
I don't think Bell's theorem raises a problem in either LQG and CDT because they have the traditional quantum theory built into them. They are not deterministic theories like Wolfram's. Bell's theorem discounts the possibility of quantum (as it is observed) if there were no long range connections defying locality.
I like this quote:
"Alice wants to synchronize her clock with Bob's, so this is how it might go:
At 12:00:00 pm Alice time, Alice sends out a beam of light to Bob, as a signal for Bob to tell Alice what time he has.
Once Bob receives the beam of light, Bob immediately sends Alice a beam of light telling her the time he has.
At 12:00:02 pm Alice time, Alice receives Bob's time, say 11:41:23 am.
At this point, how should Alice synchronize clocks? Clearly, 12:00:01 pm Alice time is 11:41:23 Bob time. We're done.
But we've unknowingly introduced an assumption here, namely that the speed of light travelling from Alice to Bob is identical to the speed of light travelling from Bob to Alice."