First, it is important to keep in mind that Turing Machines were initially devised by Turing not as a model of any type of physically realizable computer but rather as an ideal limit
to what is computable by a human calculating in a step-by-step mechanical
manner (without any use of intuition). This point is widely misunderstood
-- see [1] for an excellent exposition on this and related topics.
The finiteness limitations postulated by Turing for his Turing Machines
are based on postulated limitations of the human sensory apparatus.
Generalizations of Turing's analyses to physically realizable computing devices (and analogous Church-Turing theses) did not come until much later (1980)
due to Robin Gandy -- with limitations based on the laws of physics.
As Odifreddi says on p. 51 of [2] (bible of Classical Recursion Theory)
Turing machines are theoretical devices, but have been designed with
an eye to physical limitations. In particular, we have incorporated
in our model restrictions coming from:
(a) ATOMISM, by ensuring that
the amount of information that can be coded in any configuration of
the machine (as a finite system) is bounded; and
(b) RELATIVITY, by
excluding actions at a distance, and making causal effect propagate
through local interactions. Gandy [1980] has shown that the notion
of Turing machine is sufficiently general to subsume, in a precise
sense, any computing device satisfying similar limitations.
and on p. 107: (A general theory of discrete, deterministic devices)
The analysis (Church [1957], Kolmogorov and Uspenskii [1958],
Gandy [1980]) starts from the assumptions of atomism and
relativity. The former reduces the structure of matter to a finite
set of basic particles of bounded dimensions, and thus justifies the
theoretical possibility of dismantling a machine down to a set of
basic constituents. The latter imposes an upper bound (the speed of
light) on the propagation speed of causal changes, and thus
justifies the theoretical possibility of reducing the causal effect
produced in an instant t on a bounded region of space V, to actions
produced by the regions whose points are within distance c*t from
some point V. Of course, the assumptions do not take into account
systems which are continuous, or which allow unbounded action-at-a-
distance (like Newtonian gravitational systems).
Gandy's analysis shows that the THE BEHAVIOR IS RECURSIVE, FOR ANY
DEVICE WITH A FIXED BOUND ON THE COMPLEXITY OF ITS POSSIBLE
CONFIGURATIONS (in the sense that both the levels of conceptual
build-up from constituents, and the number of constituents in any
structured part of any configuration, are bounded), AND FIXED
FINITE, DETERMINISTIC SETS OF INSTRUCTIONS FOR LOCAL AND GLOBAL
ACTION (the former telling how to determine the effect of an action
on structured parts, the latter how to assemble the local
effects). Moreover, the analysis is optimal in the sense that, when
made precise, any relaxing of conditions becomes compatible with any
behavior, and it thus provides a sufficient and necessary
description of recursive behavior.
Gandy's analysis gives a very illuminating perspective on the power and limitations of Turing Machines. It is well-worth reading to gain further insight on these matters. Be forewarned however that Gandy's 1980 paper [3] is regarded as difficult even by some cognoscenti. You may find it helpful to first peruse
the papers in [4] by J. Shepherdson, and A. Makowsky.
[1] Sieg, Wilfried. Mechanical procedures and mathematical experience.[
pp. 71--117 in Mathematics and mind. Papers from the Conference on the
Philosophy of Mathematics held at Amherst College, Amherst, Massachusetts,
April 5-7, 1991. Edited by Alexander George.
Logic Comput. Philos., Oxford Univ. Press, New York, 1994. ISBN: 0-19-507929-9
MR 96m:00006 (Reviewer: Stewart Shapiro) 00A30 (01A60 03A05 03D20)
[2] Odifreddi, Piergiorgio. Classical recursion theory.
The theory of functions and sets of natural numbers. With a foreword
by G. E. Sacks. Studies in Logic and the Foundations of Mathematics, 125.
North-Holland Publishing Co., Amsterdam-New York, 1989. xviii+668 pp.
ISBN: 0-444-87295-7 MR 90d:03072 (Reviewer: Rodney G. Downey)
03Dxx (03-02 03E15 03E45 03F30 68Q05)
[3] Gandy, Robin. Church's thesis and principles for mechanisms.
The Kleene Symposium. Proceedings of the Symposium held at the
University of Wisconsin, Madison, Wis., June 18--24, 1978.
Edited by Jon Barwise, H. Jerome Keisler and Kenneth Kunen.
Studies in Logic and the Foundations of Mathematics, 101.
North-Holland Publishing Co., Amsterdam-New York, 1980. xx+425 pp.
ISBN: 0-444-85345-6 MR 82h:03036 (Reviewer: Douglas Cenzer) 03D10 (03A05)
[4] The universal Turing machine: a half-century survey. Second edition.
Edited by Rolf Herken. Computerkultur [Computer Culture], II.
Springer-Verlag, Vienna, 1995. xvi+611 pp. ISBN: 3-211-82637-8
MR 96j:03005 03-06 (01A60 03D10 03D15 68-06)