Great passage. As a digital artist who works with fractals, that really resonates with me. Visual fractal detail quite often converges to visual noise (and looks remarkably like a noise function as expressed on e.g. a TV set). I usually need to remove or de-emphasize that noise in order to clarify the direction and abstract intent of the work.
One of my favorite films that works along these lines is the 1998 Japanese film "After Life," in which a small party of workers attempt to recreate others' memories with very basic film studio equipment. I absolutely treasure the loss of detail in the various recreation scenes, and the way it suggests that there is actually a satisficing point at which we might realize, "yes, I'm actually reliving that memory right now." So I agree with Mr. Graham's conclusion that technology can bring this about.
On an unrelated note, PG's essays always bring to mind the Meyers-Briggs INTJ type. Essays about the annoyance of accumulating "stuff", a focus on abstract / intuitive learning styles, and clever writing which quickly establishes a theoretical framework which is then thrown against the world's (audience's) experience, rather than starting from first principles hoping to eventually reveal a framework as others might do. His seems to me very much a "systems thinker" approach.