> which plausibly has far more precision than a float32
If that was true, then a DRAM cell could represent 32 bits instead of one bit. But the analog world is noisy and lossy, so you couldn't get anywhere near 32 bits of precision/accuracy.
Yes, very carefully designed analog circuits can get over 20 bits of precision, say A/D converters, but they are huge (relative to digital circuits), consume a lot of power, have low bandwidth as compared to GHz digital circuits, and require lots of shielding and power supply filtering.
This is spit-balling, but the types of circuits you can create for a neural network type chip is certainly under 8 bits, maybe 6 bits. But it gets worse. Unlike digital circuits where signal can be copied losslessly, a chain of analog circuits compounds the noise and accuracy losses stage by stage. To make it work you'd need frequent requantization to prevent getting nothing but mud out.