...but that understanding of our own consciousness is simply beyond us.
Perhaps for the majority of the populace at this time, sure, but looks at the strides made in understanding memory. This is like most sciences, our tools are too crude, but are getting more refined all the time. I wouldn't put it past your lifetime, Roney - providing you've got more than a couple of years left
Why isn't fire considered a life form?
It really depends on you definition. Going with Mfitz, "I'd say the need to create, to do, to make, to act, instead of just being." It's because it does nothing to continue it's existence. The scientific-y answer would be that plasma(fire) is considered a fourth state of matter - so in the same way liquid Mercury and frozen lemon juice are not alive, neither is fire.
But it is that force that needs for things to happen that benefit those of us who enjoy existence.
I was going to give TAD a lame-o award for his love answer, but then he recovered with his other posting. I agree and add "successful life", as there is likely forms of life that don't "giveashit" and they die off quickly.
I've seen in other places where people have demonstrated very thoroughly that nature tends toward entropy
That's science hocus-pocus. A solid (take frozen water) achieves a structured steady state - not decay, no disorder. In the "ultimate state of inert uniformity " sense - yes, I suppose given enough time all the energy will level out, like water in a big pool, but in "nature" as in the stuff outside, no.
To directly answer Leon_Kensington's question "...where is the dividing line between organism and AI?" At this point it's biological versus mechanical - the day we learn to map memory engrams into an organic thing that changes.
As to what constitutes consciousness, life, etc.: Whatever can tell you, through it's actions, that it is aware, is alive. So if a worm slithers away from pain, a tree grows extra branches because of extra sunlight, etc. Of course, if you "upload" a consciousness into a hard drive, you screw my theory over, but I'll wait for that to happen before I change it