MaxwellsDemon said:
Special Relativity is certainly local, but I would argue that General Relativity is not. In GR, the geometry is a global description, not a local one. Locally the geometry is flat, its only on a large scale that spacetime curvature comes into play. I would think that the principle of general covariance (where all “regular” derivatives in local laws are replaced with covariant derivatives when talking about large scale phenomena) is where this difference is most apparent. The covariant derivative still applies locally, but the extra term added in is dependent on the overall geometry. The curvature is something extra that requires a knowledge of the energy-momentum distribution in a region that goes beyond simply knowing the distribution in the here and now. The fact that we have to change our calculations in GR depending on the global geometric features of a region suggests to me that it is locality that needs to be abandoned. To me, abandoning realism is far more distasteful anyway. I prefer to think that concepts like position and momentum aren’t just ideas I have about nature, or biases from my human way of thinking, but that they have some objective foundation in reality. Even if they don’t exist exactly as I conceive of them, I’d like to think that a concrete objective phenomenon can be related to my ideas in some way. Color and temperature don’t exist as I perceive them, but there are still well defined objective things like wavelengths of light and atomic vibrations that can be related to my sensory experiences.
First, it looks like you’ve conflated causal and constitutive locality. Your argument for the “nonlocality” of the covariant derivative is of the constitutive variety. See Howard, D., “Spacetime and Separability: Problems of Identity and Individuation in Fundamental Physics” in Potentiality, Entanglement and Passion-at-a-Distance, edited by R.S. Cohen et al., Kluwer Academic, Great Britain, 1997, pp. 113-141. Then you argue to keep “realism,” but realism in this sense is associated with constitutive locality, i.e., that entanglement violates causal locality and/or realism per EPR --> causal and/or constitutive nonlocality per Healey and Howard, for example. See also Healey, R.: Holism and Nonseparability in Physics: In: Zalta, E.N. (ed.) The Stanford Encyclopedia of Philosophy (Spring 2009 Edition),
http://plato.stanford.edu/archives/spr2009/entries/physics-holism. For the term “constitutive locality” see Healey, R.: Gauging What’s Real: The Conceptual Foundations of Gauge Theories. Oxford University Press, Oxford (2007).
Essentially, EPR said there are quantum “objects” which possesses definite properties in and of themselves (realism) that are revealed by measurements independent of what’s being done to entangled partners at space-like separated events (causal locality). If you keep the causality requirement, you can explain the entangled outcomes by saying the quantum objects’ properties are not possessed in and of themselves, but they are “co-possessed” by entangled partners. That’s constitutive nonlocality/nonseparability.
Second, I don't agree that your argument establishes the constitutive nonlocality of the covariant derivative. As a differential geometry prof once emphasized, despite being definable via parallel transport, the covariant derivative is a local object independent of the choice of curve along which you parallel transport at a point on the manifold. You do need to input a vector in the tangent space of said point if by "covariant derivative" you mean the exterior derivative so restricted, but it's still local. See Misner, C.W., Thorne, K.S., Wheeler, J.A.: Gravitation. W.H. Freeman, San Francisco (1973).
So, while the measurement devices and outcomes are separated (constitutively local), the properties of the objects being measured are not per constitutive nonlocality. It’s hard to imagine (for most people, anyway) how nonseparability would be modeled, as the rest of your post indicates. If you’d like to see how we model constitutive nonlocality via discrete path integrals over graphs, see arXiv 0908.4348. It’s in the “revise and resubmit” mode at Foundations of Physics, but substantively it’s sound (at least the referees and editors had no complaints about its substance—if you find a mistake, please let us know).