I would that the biggest problem with this "generalization" is that it is essentially meaningless because it can be used to describe any process of change that has a selective component. However, that is not all one needs to consider when looking at biological evolution and technological development from an "information standpoint", because how, for lack of a better term, metainformation (i.e., information about information) changes with and is implemented differs fundamentally in the two processes. For instance, technological development can incorporate information from failures in previous iterations and biological evolution can't.
You do point out a real contrast.
It's sort of like digesting fruits and vegetables. In detail the process of the digestion of each is different as per enzymes and timing. You can still illuminate the bulk of the digestive process by descibing the digestion of either.
But some people can't stomach them in the same meal. A mixed salad of carrots and citrus is a real gut buster for me.
I think you and others who have objected to Southwind's Analogy have illustrated in concrete that some cannot digest its mixed salad of biological and technological evolution.
What I would be fascinated by would be an explication of the selection process that gives rise to human intelligence and self-consciousness.
We don't know that yet. You're right that merely saying it's a selection process is rather shallow, but I suspect that a selection approach to the problem would yield more understanding than an algorithmic one.