The black hole piece in part II was amusing, if you keep reading.
Black holes and information is a thorny issue, see e.g. [1]. So I suspect something went awry in the argument when (s)he brought quantum gravity into it.
[1]: https://en.wikipedia.org/wiki/Black_hole_information_paradox
Now you get 8 times more data. But cannot story this data in a volume 8*V1, because if you try to use 8 volumes V1 with density d1, and place these next to each other, they will collapse into a black hole.
Thus, the more data you have, the smaller density you can use for storing it.