@dwrrehman made some interesting observations in this thread which are relevant to what you are touching on here.
The concept of location (which is a foundation of SMI) could be looked at in a couple of ways. One is the obvious correlation to a physical position (cells activating in a grid pattern which depicts one’s position in a room, for example). The other is to encode semantics in otherwise randomized cell activations, whereby semantically similar locations share active SDR bits.
From there, the concept of “location” can be taken to higher levels of abstraction, such as the sense of knowing “where” a particular memory is in your brain when you “reach out” to play it back. This type of abstraction can be applied to other concepts as well, such as the “motor commands” that you use when you are humming a melody in your head, etc.