As far as I can tell, Watson is obviously right.
That said, we have every reason to believe that the intelligence gap is solvable. The difference in performance between American blacks and those still in Africa suggests that more than half of the problem is environmental and can be tackled via relatively simple measures like micronutrient supplementation. And by the time we are done implementing that, it's likely that germline engineering and/or "smart pills" will be sophisticated enough to handle any genetic component of the problem that may re...
I interpret Eliezer to be saying that the Kolmogorov complexity of the human genome is roughly 25MB -- the absolute smallest computer program that could output a viable human genome would be about that size. But this minimal program would use a ridiculous number of esoteric tricks to make itself that small. You'd have to multiply that number by a large factor (representing how compressible, in principle, modern applications are) to make a comparison to hard drive bits as they are actually used.