e.g., do I need to know bayes' rule? bayesian inference? etc.
Not specifically iPython notebook versions of them.
>The key insight to this entire book is in the next paragraph. Read it carefully!
Okay. What is it!!!
>If we only take data from the measurement then the prediction will not affect the result. If we only take data from the prediction then the measurement will be ignored. If this is to work we need to take some kind of blend of the prediction and measurement (I've italicized the key point).
Unless I am missing something, this "key insight" is redundant and has essentially zero information content, apart from the assertion that to get a good result it needs to be a function of two variables, measurement and prediction. Not one. not the other. But two variables, and that's what they are called, yessir.