Nevertheless, my gut feeling, too, is that Kurzweil is mistaken. I can't quite put a finger on it yet, but at least one problem I see is this: Kurzweil seems to suggest that the observation that the genome consists in only 50MB of data (after compression) somehow gives us an upper bound to the complexity of the system. I'd however suspect it rather gives us a lower bound: factor in all the epigenetics, external interactions, the not necessarily simple rule set provided by physical chemistry (this is not in the genome, obviously), etc etc, and the problem may be quite a bit larger.
Take for example the way we currently believe gene transcription promoter networks to work. The combinatorial nature of those interactions means that even though the underlying data is "only" a few megabytes, the system you end up simulating gets very big very quickly.