I wrote a brief article for Gamespot News about the oft-repeated "There is no spoon" comment from State of Play 2. I'll likely expand and further flesh out the arguments in future work -- I suspect that we'll all be debating this until the next SoP -- but since I thought that this was one of the most basic disagreements to come out of State of Play 2 that it was worth picking up.
The line from The Matrix, "There is no spoon," was first used during the conference by Yale's Yochai Benkler, but the phrase came up again and again. In various ways, its adherents argued that 3D digital worlds are text with 3D interfaces grafted on. They're Wikipedias with prettier graphics. Often, the "no spoon" argument was invoked as a precursor to discussions about property, regulation, or connections between the real and the digital worlds. It is a tempting shorthand, made all the more powerful by its association with The Matrix. It is also clearly wrong. There is a spoon, just not one that you can eat with. Digital worlds are very real places.
Also, the final version of "Escaping the Gilded Cage", which I wrote for NYLS after the first SoP is now up on SSRN. I've updated "A Piece of Place" and added "Aviators, Moguls, Fashionistas and Barons" which was originally written for Gamasutra.