bcrowell said:
...The Bekenstein bound says there's a limit on how much information can be stored within a given region of space. If spacetime could be described by continuous classical fields with infinitely many degrees of freedom, then there would be no such limit. Therefore spacetime is discrete.
...
But what does "spacetime is discrete" mean? One way to show the difficulties with that argument is to look at the example of LQG (but not at a popular level, popular exposition often misleads and confuses since we are talking about math models, not verbal models).
In LQG one starts with a continuum---a differential manifold---representing spacetime.
As usual it is connected. You can run a continuous path between any two points. It is not discrete---does not have discrete topology. Just the usual continuum that mathematicians have been using for over 150 years.
On a spatial slice of that continuum one constructs quantum states of geometry.
A Hilbert space of states of geometry. Operators corresponding to making geometric measurements. Observables.
It turns out that the area and volume operators have discrete spectra.
One proves as a theorem that there is a smallest measurable area---essentially the Planck area.
This does not mean that space is topologically discrete. It does not consist (in the LQG context) of separate points.
And one can prove the entropy bound in the LQG context. Indeed Ashtekar recently published a proof of the
Bousso covariant entropy bound. This is something that fails as one approaches a singularity in classical GR. So Ashtekar went Bousso one better

He proved the covariant entropy bound more generally---extending it to places where it classically fails.
And still, in LQG, space and spacetime are not divided up into little isolated bits. We do not have simpleminded discreteness. There is a discreteness in the operator spectra---at the level of what we can know, and measure, and meaningfully talk about. We cannot measure an area smaller than Planck area.
Notice I'm not claiming LQG is right. These are just rigorous mathematical theorems. You set up a continuum, you define quantum states of geometry in a certain seemingly natural way, you find certain operators have discrete spectra. It turns out there is a limit, for some unknown reason, on what one can measure (in the LQG context.) It is somewhat analogous to the Heisenberg limitation on how accurately one can know position and momentum---limits on knowledge, limits on what it is meaningful to talk about, on measurement. Except that these are limits in the realm of
geometry itself, rather than merely in the realm of fields or particles defined on some fixed geometry.
LQG people, as a kind of careless shorthand, especially in a popular wide-audience discussion, will talk about spacetime discreteness when what they mean is this kind of discreteness at the level of geometric information.