Fridge Horror. Doesn't digesting Mr. Igoe make Jack a cannibal? Also, David Lynch wishes he could have dreamed up something as uncomfortably Freudian as Tuck entering his ex-girlfriend's uterus — while she's pregnant...
The Miniaturization process in the film is depicted as breaking up the object into its component molecules, & a sampling of those molecules is then collected & used to "compile" a microscopic version of that object. The loss of so much of the objects mass is presumably the reason why the administrator (Dr Niles) described the re-enlargement process as "tricky" & why 2 chips are used as they can serve as a guide for exactly how to rebuild the object.
One of the scientists at the government lab recognizes Dr. Canker, implying she may have been hanging around gleaning blueprints and ideas for awhile. The chips are just too new and complicated for her to copy.