Still good topic for late night conversation today. I still think on this from time to time.
IMO the crux of the issue may revolve around 'perception' (physical relationship with consciousness); that is, perception is reality rather than a proof of it. Schrödinger has some interesting related conclusions about consciousness in his book What is Life?. He basically concludes that a plurality of consciousnesses must be an illusion.
Who even wrote this? This is the complete opposite of true. Bell's theorem completely rules out all local hidden variable theories. You'd only refer to local hidden variable theories as a "narrow class" of hidden variable theories if you didn't know what a hidden variable theory was.