The problem I have with your argument is the unspoken and unproven assumption that physicality is "mere".
In this context, "mere" is not a term of approbrium. It "merely" signals the interjection of a relative term into the argument. At the level of the problem we are considering here, "mere" is not fundadamental. All it does is suggest the idea of a hierarchical order of which it is not a determinant, just a result that might be evaluated relative to other results. That is, "mere" takes its place in the scale of a larger scheme.
But that is not to say that I think physicality is king. For all you or I know, physicality is a "mere" epiphenomenon of Reality.
If you disagree, then I welcome hearing your counterargument.