Interesting you should mention the “it from bit” part. I have been working on a post that will focus on Wheeler and his ideas which are very relevant here. The fact that, in a “participatory” universe the observer is part of the underlying reality as you say, suggests that the two (the observer’s mind) and the material with which is interacting are somehow deeply related. (by the way, I like your comment about modern art — I am also working on a post about art as it relates to dual aspect monism you might like.)