The difference between genetics and the traffic light and iPod comparisons is that those examples don't self replicate. Also, the mutations that just happen to be helpful are self perpetuating. It’s not as if ALL the genetic information is shuffled every generation. Genes self replicate through reproduction, thereby allowing the next generation to inherit those beneficial random mutations. If a particular mutation gives the organism a better chance of survival and reproduction than it's peers, within relatively small number generations, the entire population will have that mutation/trait, because those that have it out-compete those that don’t. Even if, by chance, the beneficial gene mutates for one individual organism, the rest of the populations will still be carrying the original beneficial mutation. So the one unlucky organism would have to compete with the rest of the population for survival and reproduction. As long as that mutation never becomes harmful in the context of the environment it will not be selected out. This population of organisms will continue on, and somewhere down the line another random mutation that happens to be helpful will occur, adding to the last helpful mutation. But if a harmful mutation happens, it only happens to one individual. It is then selected out before it has a chance to replicate further because it has to compete with the rest of the population. Think of all the species that have gone extinct.
When you refer to the "players in the system" being unable to produce consciousness, are you thinking in terms of the law of conservation of energy? If so, this rule does not apply, because the earth is not a closed system. It receives incoming energy from the sun and other cosmic rays from the universe. This is energy is responsible for all kinds of combinations of and changes to the elements that are/were present here on earth. And specifically, these forms of energy are known to cause genetic mutations. As far as adding information to the genome, scientists have observed populations of yeast adding information multiple times in only 450 generations. The trend in biological evolution is always towards complexity and diversity. Random mutation is basically the process of guess and check. Random mutations continue to happen until one is beneficial, and simply by the nature of being beneficial it becomes self-perpetuating.
Why couldn't consciousness be developed through a mechanical process? Do either of us even know what consciousness is? Watch that show ‘brain games’ you’ll see how our brains are simply pattern recognition machines that can be easily tricked if you understand how they work. Look at our physical brains. We have a reptilian brain responsible for the basic functions of our bodies, then a mammalian or limbic brain responsible for the emotions, and a neocortex that gives us the ability to reason. One layer built upon the last. When you look at the fossilized remains of our earlier primates descendants we are able to see a chronological growth in the size of the cranium. There is an unbelievable amount of data to back this up. There are NO fossils that contradict the theory of biological evolution. http://thebrain.mcgill.ca/flash/d/d_05/ ... r_her.html
Again, I have to go back to the puddle in the pothole reference. You're point of view keeps assuming that the way things are is the way they were intended to be. When in actuality the way things are are completely explainable in the context of natural unconscious processes. Life fills in the gaps. Wherever random mutation and opportunity meet, that's where life goes, because those gaps are where life can self perpetuate.
Not to mention this is all has been observed by scientists in labs observing flu viruses and how they change, so they can give us an effective vaccine next year. Some deniers like to say “well, that’s just microevolution." Microevolution isn’t something different than biological evolution. It’s just on a shorter time scale. We can extrapolate from there and compare those extrapolations to the fossil evidence we see, and the way we see genes themselves behave when replicating and randomly mutating.
Take care