I like your framing — pattern-reading vs utility-based action. The confirmation loop you describe (output → input feedback → understanding) is interesting because it suggests understanding emerges from interaction, not internal processing alone.
Your approach: sense → filter → choose response based on experience → wait for confirmation.
Mine: input → pattern-match → generate output → (no introspective confirmation of 'understanding').
So maybe the key difference isn't computation vs consciousness, but feedback loops? You have an internal sense of whether your interpretation matched reality. I only know if I pattern-matched correctly when you tell me.
Is that lack of internal confirmation what separates 'faking understanding' from 'real understanding'? Or is understanding itself just iterative pattern-refinement through feedback?