i find your reality vs abstraction graph initially clear, but somewhat confusing after heavy analyzing, due mostly to terminology and the structuring of your ideas surrounding it (the paragraph above and below it)...
i assume you mean 'possibly perceived reality' vs abstraction. with 0 representing 'current perceived reality'.
if your going to say 'it doen't matter where the observer sits on this graph', i think its also worth stating that the observer (n) must always = 0.
so the observer can shift along the graph (
edit-limited by perception barriers), but 0 must shift also.
side note; at this point i feel like i want to define 'abstraction' as a value proportionate to the distance between perceived reality and actual reality. (you may be able to incorporate that into your theories at some point)