I believe I have explained the context of the analogy on numerous occasions. The very fact that you have asked this basic question at this stage leads me to believe that you have have absolutely no comprehension of either the premise of the OP or the ensuing supporting arguments.
So apart form incremental improvement over time, What is the similarity.
To get the analogy to work even on your terms, you have had to invoke a system that is unlike any real development anytime in history (and because of its innefficient use of evolutionary algorithms, unlike any plausible system anytime.
The analogy would only be remotely useful if it kept to something that people understand. If they can't comprehend the beautiful simplicity of evolution and natural selection, then wierd automated factories with mystical "market selection" that is never properly explained is not going to help.
I believe this highlights a large part of your inability to comprehend the analogy; you have an aversion to the words used, and they are forming a negative mental barrier. I should not be surprised to learn that there is, in fact, either a medical or psychological explanation for this - seriously!
So it is not what you say, but the way that you say it? When Dembski says the same as you that is misleading, but when you say the same, it is helpful?
If you count carefully you will realize that you cite two similarities, not one, and I have added a further two, making four. How many similarities, exactly, do you consider an analogy needs to be valid?!
"Incremental improvement over time", or "both show optimisation and both are iteritive processes" could count as either one or two, the second is implied from the first in the second case.
It is not the number of similarities but the power and utility of the analogy that is important. The
hydraulic model works as a simple model of electrrical devices, but only when the limits are appreciated.
The trouble is that you don't seem to appreciate where the analogy falls down.
A crocodile's method of hunting is a bit like wolves, because both eat their prey.
Maybe I could extend this a little.
If a pack of wolves congregated round a water hole and ate wilderbeast then there would be essentially the same method of hunting as a crocodile.
Firstly the analogy has to be altered beyond recognition, secondly it misses essential parts of both processes. Crocodiles are ambush hunters and drown their prey, whilst wolves are pack hunters, and herd their prey.
No it's not; there's no such thing as 'intelligent evolution', at least not in the natural environment. There is, however, in the 'artificial' human environment, and it does, indeed, essentially form a precursor to my analogy (because all human design has intelligence behind it), but is not, as I have repeatedly explained, essential to the analogy. I have explained how the title 'Intelligent Evolution?' came about. It could be considered unfortunate. If I knew what I have learned from this thread about the implications of using that term when I made the OP I would probably have chosen a different title, and yes, I would still have made the OP!!!
But even your tortured example of an automated factory making what the market dictates, still begs the question as to
how the market's dictates are interpereted.