Comment by js8

No, latent space doesn't have to be made of percels, just like not every 2D array of 3-element vectors is an image made of pixels. Percels are tied to your sensors, components of what you perceive, in totality.

Of course there is an interesting paradox - each layer of the NN doesn't know whether it's connected to the sensors directly, or what kind of abstractions it works with in the latent space. So the boundary between the mind and the sensor is blurred and to some extent a subjective choice.