Oh absolutely you're correct here.
> In analog computing, complexity resides in network topology, not in code. Information is processed as continuous functions of values, such as voltage and relative pulse frequency, rather than by logical operations on discrete strings of bits.
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> Individually deterministic finite-state processors, running finite codes, are forming large-scale, nondeterministic, non-finite-state metazoan organisms running wild in the real world. The resulting hybrid analog/digital systems treat streams of bits collectively, the way the flow of electrons is treated in a vacuum tube, rather than individually, as bits are treated by the discrete-state devices generating the flow. Bits are the new electrons. Analog is back, and its nature is to assume control.
> Say, for example, you build a system to map highway traffic in real time simply by giving cars access to the map in exchange for reporting their own speed and location at the time. The result is a fully decentralized control system. Nowhere is there any controlling model of the system except the system itself.
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> Even in the age of all things digital, this cannot be defined in any strictly logical sense, because meaning, among humans, isn’t fundamentally logical. The best you can do, once you have collected all possible answers, is to invite well-defined questions and compile a pulse-frequency weighted map of how everything connects. Before you know it, your system will not only be observing and mapping the meaning of things, it will start constructing meaning as well. In time, it will control meaning, in the same way the traffic map starts to control the flow of traffic even though no one seems to be in control.
In these passages, "The Computer" that's running is the network, a meta-computer, made up of the individual "computing elements" if you will that are the physical pieces of hardware that most anyone would point to and call "a computer". And as you've recognized, that's Dyson's point: No matter what those little elements are made of, the overall picture is analog. If we want to understand how "Algorithms" are influencing the world, we can't think of them as "discrete computing algorithms". And finally, the emergent behaviour out of this can lead to large-scale control effected on our society without being designed in, and even if nobody is thinking to effect control.