"Markov Decision Model ... also called a story" :)
As for consciousness, I like his explanation. I personally think it is the brain that keeps a log of past decisions, so that when pain/pleasure comes, it can look back and see what decision to reward/punish (delayed reinforcement based learning). The moment a brain puts higher level things in decisions, like expectation of pain/pleasure, and even "I made a decision", is when self awareness comes in.
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I disagree somewhat when he says reality looks nothing like what our brain thinks reality looks like. With different sensors, sure it would all look very different. But not like reality is a cellular automata, and our sensors register that stuff raw, yet our brains imagine (dream) the patterns as objects and people with colors and sounds.
Our sensors see by the laws of physics, seeing objects with properties made possible by the laws of physics. That underlying those laws might be something entirely different, perhaps. But the translation from that underlying thing happened before the light hit your eye, not in the brain. E.g. color is a property of reality, not of the brain.
A completely different effect is that the "picture" we are get in our brain, is heavily pre processed and filtered and predicted. So the color that we notice, and what light has hit our eyes, those are not the same.
Would be interesting to know what he ment by that.