16/40 bits per second? Then why is the quality of my vision so precise and I'm still able to hear the sounds of my environment? I've heard 2 bits/sec before as well.
Is this referring to conscious sensations recorded in memory, then maybe I can be warmed up to the idea. Long term memory is definitely spotty, although why can I recall my favorite latest dance track with such precision? The lead, bass, kick, clap and atmospherics themselves must compose more than 16 bits/sec.
What about what is processed by the unconscious, to be remembered later? Like when you didn't notice something at the time, but in the future something sparks your memory to remember it. Does the unconscious (that can become conscious) operate on a separate port with its own bandwidth?
But consciously? I strictly, abhorrently refuse. This music is FLAC, baby.
On the other hand, if it is true, then maybe our brain's compression algorithms are insane. Maybe we process sensations in relation to all our past sensation - I hear only the unique parts of this epic bassline, but the data contains pointers to all the basslines I've heard before, turning my consciousness into a complex amalgam of current and past. Then a two-hour movie in 22.5 kilobytes could make sense.