Paul, you're just created your own definition of physicalism. it has nothing to do with observation. "physicalism" is the belief - unsupported by any scientific evidence - that Reality at its foundation is basically physical. No physicalist has ever properly defined what physical IS but they are quite clear about what it is not.

"Physical" is NOT living, aware, sentient, or intelligent. This is a statement of religious belief, not science -as no scientific experiment can show this.

in fact, all scientific observations begin with something that appears in conscious experience.

note that I'm not disagreeing with physicalism I'm simply pointing out it is not supported by any scientific evidence..