Correct, but the consequences of this are just speculation. My speculation: Being 1000 times faster gives you entirely different capabilities. What's the use of decoding an MP3 in anything less than real-time?
That's correct. I'm sure flies and dogs are Turing machines as much as we are (if we are), yet we are considered to be much more intelligent beings than both of them. A computer capable of a level of intelligence as big to us, as we are to a dog, would be pretty impressive. But I think he's not talking about that, as he says: The one notion I have real trouble with is that the AI-beings of the future would be no more comprehensible to us than we are to dogs, but if the singularity mind was bigger than us, but of the same nature, we would be able to compute it with pencil and paper, or in a computer, and to analyze it to see how it works (very slowly, as a Turing machine).