First, sensitivity to initial conditions is a necessary but not sufficient property for chaos. Some sort of folding/mixing is also necessary, which can be gaura

First, sensitivity to initial conditions is a necessary but not sufficient property for chaos. Some sort of folding/mixing is also necessary, which can be gauranteed by a bounded state space. Second, it's definitely true that information processing systems, if they are to be reliable enough to be useful, are not going to be chaotic throughout their state space. They need to return the same output given a certain input. But I'd imagine there are also at least a few noisy regions.