And that's really the issue; I can see how an algorithm can shuffle symbols about without any apprehension of underlying meaning. What I cannot see, and I don't thing anyone has the answer to this, is how the shuffling of symbols can ever give rise to the apprehension of meaning.
Unless you think that digital processing kit such as a PC can become conscious, a theory that appeals to algorithms to produce consciousness (rather than to shape it) will seem absurd.
Ah, yes, I'm with you on that one. Like John Searle's 'Chinese Room' thought experiment - if you're just manipulating symbols, at what point does understanding take place, if at all?
That is the crux of the issue, and it's the one I (within my superficial understanding of the subject) believe can be effectively tackled by a new, homogenous theory of learning and memory in the cortex.
I think it goes something like - the cortex is not a computer in the traditional sense, not even a parallel, quantum, 'new special kind of math' type of computer. The fundamental task of the cortex is to pay attention to its sensory inputs, form generalized, invariant memories about common patterns in the input, then use these patterns to guess ahead as to what the next incoming pattern will be.
After the formation of simpler invariant representations, you can continue this process and start to mix together representations from different sensory modalities. This starts to form models of cross sensory associations, and eventually, high up the brains processing hierarchy, leads to highly abstract models of associative relationships between concepts and ideas which are almost entirely removed from the basic spaciotemporal patterns found at the lower levels.
This type of system allows you to constuct complex causal models of the relationships out in the world, and enables the cortex to make predictions about what will happen next, and understand which relationships are important in reality.
Anyway, I could go on all day. But that's the basic idea of how a learning algorithm can 'understand'.