But turing machines are theoretical concepts. The physical processors we have - are only physical approximations of a theoretical concepts - and if the argument was made for the view of "determinism" that I outlined - it would be about the physical processor, the physical world itself.

Paraphrasing, the theoretical image of an atom, as well as the set of atoms and other particles - is perfectly deterministic. But the chaos theory talks about the real world, not the theoretical framework.