For example: Say I'm at some distance from you, between 0 and 1 km (all equiprobable). Now I switch to being 10x as far away. This is time-reversible, but because the volume of the set of states changed, the differential entropy changes. This is the kind of thing that happens in time-reversible continuous systems that can't happen in time-reversible discrete systems.
Interestingly, the differential KL-divergence (differential cross-entropy - differential entropy) doesn't seem to have any of these problems.
This can then be related to the big bang, and maybe it could be said that we are all living of the negentropy from that event and the subsequent expansion.
Getting different entropy values based on choice of units is a very nasty property though. It kinda hints that there is one canonical correct unit (plank length?)
When ice cubes in a glass of water slowly melt, and the temperature of the liquid water decreases, where does the limited ability of an observer come into play?
It seems to me that two things in this scenario are true:
1) The fundamental physical interactions (i.e. particle collisions) are all time-reversible, and no observer of any one such interaction would be able to tell which directly time is flowing.
2) The states of the overall system are not time-reversible.