As it relates to biology, the constant transferring of genes would not lead to an upgrade of information, but a steady, gradual decline
This is where things get confused. We have a tendency to see a loss of information as a bad thing because we usually intend to send a specific message. From this point of view, the original message (in the first DNA lifeforms) is horribly twisted and corrupted.
However, the 'goal' of this message isn't to pass a specific message, but a general message "replicate". The message itself creates a replicating machine. If the message gets corrupted so that it creates a machine that cannot replicate the message, it gets selected out. If the message gets corrupted so that it creates a machine which replicates slightly better than others, the frequency of occurance of that corrupted section will increase.
From the point of view of sending the original message - this is a disaster. The information has been corrupted and is now becoming the new gospel, soon the original pure message will be lost forever. However, a population which is better at replicating will be the result.
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