Take out the associativity and you've taken out the "deep" in "deep learning".
Edit: On further reflection, the non-commutativity of neural networks is also a crucial component of machine learning. Without it, a neural network can't make a decision at one layer that depends on its decisions at a previous level!
If
- your network structure is fixed, and
- you always evaluate the matrix in a given order, and
- you are careful/smart about how you train the weights (Ok, I haven't thought through the ramifications here...)
then I'm not sure you care much about either commutativity or associativity. Maybe a lack of associativity makes backprop impossible, and maybe commutativity makes "Google deep dream" impossible (no idea), but I don't quite agree with the "composability" objection to a lack of associativity and I don't understand the objection to a lack of commutativity sorry.
Toy evaluate the network in two orders - forward (use) and backward (training).
The non-associativity of the octonions is fundamental to their structure, not something to be worked around. In particular, there's no way to consider an octonion-valued network as comprising several layers plugged in serial.