There is some discussion about people "with an internal monologue", and people "without". I wonder if those might be some different ways of running that loop, or maybe some people have one loop take over others... and the whole "dissociative personality disorder" could be multiple loops competing for being the main one at different times.
Related to fidelity, some time ago I read an interesting thing: consciousness means having brainwaves out of sync, when they get in sync people go unconscious. From a background in electronics, I've always assumed the opposite (system clock and such), but apparently our consciousness emerges from the asynchronous differences, meaning the inefficiencies and poor fidelity might be a feature, not a bug.
Anyway, right now, as someone suffering from insomnia, I'd happily merge with some AI just to get a "pause" button.