A black hole is a maximum entropy state, but it still has an entropy proportional to area not to volume. Josh wants to interpret this as a changing of the geometry of spacetime such that it doesn't have a volume. We're speculating here. Everything I say is conjectural here. But what you're conjecturing is something very similar to the principle, not of holography,. There's another idea that came from Sussken and others. And the complementarity idea is that what the black hole is depends on how you look at it.