Earlier quoted context omitted.
You're mistaken. Every algorithm used in software can be created as a specific integrated circuit. Software is a means of controlling a general processor that performs sets of operations based on instructions it receives. No matter what level of programming you are doing (from interpreted web dev down to assembly) it gets translated and passed to the processor the same way. The problem isn't that it's too difficult t…
I think we're talking past each other in that I'm focusing on the macro level of an entire system with N (where N is large) algorithms whereas you're focusing on the concept of an individual one. My thesis is that even if I grant you a sane patent regime the macro level scales so fast and big that that changes the game and makes the concept impossible in practice.
EDIT: Reading your recent response to another commenter below, I don't want to give off the impression that I think any current software patents should be maintained. I think they should be all completely removed (or required to be resubmitted fitting new requirements that include specific details on implementation). My ideas are in the "dream world" where the rigor was applied since the first software patent was applied for.