> The actually important thing is (a) getting a result out, and (b) being able to nudge the weights to get the result closer to what you want
That is accurate.
> That doesn't have to be built on "math" or "numbers" but could be built on bits directly so long as the operations satisfy the goals
Some people have published research where the parameters or activations are binary, sometimes in a stochastic fashion. Typically either the AI doesn't converge or it converges to a rather suboptimal solution.
Also, just because the weights or activations are binary it doesn't mean there's no math involved. You need some sort of a mathematical model to figure out how to tweak the parameters of the model in order to improve its fitness to the data.
See the free energy principle, one of the leading theories of how our brain works.
> The free energy principle is a theoretical framework suggesting that the brain reduces surprise or uncertainty by making predictions based on internal models and updating them using sensory input. It highlights the brain's objective of aligning its internal model with the external world to enhance prediction accuracy
Making predictions and then correcting for them in some way is a pretty low bar and it's often achieved through differentiability. I wouldn't be surprised if relevant neurological structures exist in our brains that do this.
That reads strange, what is the difference besides the range of numbers?
With 4 bits you have 16 different weight values but these values must not be quantized. They could be anything provided gradient descent is possible. Have some combination of binary operations instead of mathematical operations. What these operations do exactly, does not really matter, as long as gradient descent/backpropagation stays possible.
In other words, the model will find a way to use the weights correctly.