dilletante said:
Hmm, you are right, my argument does favor the one thing I rejected, silly me. I did find a couple of interesting articles on the possibilities of baby universes -- one is just an article in Slate about Andrei Linde:
http://www.slate.com/id/2100715
"When I invented chaotic inflation theory, I found that the only thing you needed to get a universe like ours started is a hundred-thousandth of a gram of matter," Linde told me in his Russian-accented English when I reached him by phone at Stanford. "That's enough to create a small chunk of vacuum that blows up into the billions and billions of galaxies we see around us."
Seems that Linde developed much of his theories in the 1980's so I am not sure if they are out of date:
http://www.stanford.edu/%7Ealinde/
Another seems to be a more serious proposal by some Japanese physicists arguing that a universe can be created in a lab from a magnetic monopole:
http://www.citebase.org/fulltext?format=application%2Fpdf&identifier=oai%3AarXiv.org%3Agr-qc%2F0602084
you seem to be focusing on the question "what could a baby universe be made out of?"
say you have a BH of a few solar mass, or a million or billion solar mass, as some BH are that massive----in any case it is almost nothing (a drop in the bucket) compared with the whole universe. so where does all that energy/mass come from?
From the very start, inflation scenarios have assumed some kind of exotic matter like an "inflaton" scalar field----basically that amounts to a constant energy density (similar to the "dark energy" that is supposed to be causing accelerated expansion today)
since the scalar field energy density is constant---it violates energy conservation Law. As space expands there are more and more cubic meters of space and each cubic meter has the same amount of energy (because of constant density) so there is more and more energy.
Conventional cosmology has loose ends like this----little things happen all the time that violate global energy conservation. The "dark energy" thing going on today violates, because a constant energy density and space is expanding. People have ways of explaining away the puzzles, but it really isn't all that clear. They do the best they can.
Inflation scenarios were invented to solve some puzzles, but they contain their own puzzles, like seeming to create energy out of nothing.
Dark energy was invented to explain today's observed acceleration, but it contains the same puzzle.
So you don't have to go to Japan and listen to a man talk about magnetic monopoles. this trouble with energy-from-nothing is in all kinds of models---it is a daily experience.
this means that "baby universes" are not stranger or more contradictory than anything else----from the energy sufficiency viewpoint. A solar mass BH has enough stuff to start a universe (or at least that is not any more incredible than darkenergy or inflation.)
There is one theory that I've been learning more about lately that has the right amount of inflation happen without needing an "inflaton" exotic matter field. this is Martin Reuter's.
It is less "mythical" than the others I've seen.
And Bojowald's picture CAN simply be a ONE-BOUNCE CYCLIC, with one indefinitely long contracting phase, one bounce, one expanding phase that goes on forever. That doesn't violate energy rules in any really obvious overt way. So Bojowald is at least spared from having to address this issue.