I've never "bought" the story of Disintegration Loops that Basinski tells about its creation. The idea he composed it literally during the 9/11 attacks was just a silly attempt to add gravitas to abstract music. The more you think about it, the more off-putting it becomes. Reminds me of Stockhausen's stupendous remark about 9/11 being "the biggest work of art there has ever been".
In the same vein, tape doesn't normally just deteriorate before your eyes. The gradual change in sound of the loops is more likely due to the guitar pedal chain he was running his loops into (Basinski tends to omit this part of its creation).