I'm a big fan of Scott Aaronson, too, btw :-) Here's a pic of him demoing the soap bubbles experiment he refers to in that paper you linked to <http://www.scottaaronson.com/soapbubble.jpg >.
Still, as discussed in another comment I made, I seriously, seriously doubt that we will ever simulate any sort of intelligence by raw physical simulation. It just isn't feasible with any realistic computational technique.
I recall reading an interview with someone who founded a company that builds computers for simulating biological systems in silico who thought that there were much better algorithms waiting to be discovered because nature can do it quickly. I can't find it now.