"there is a range in our fiber strength. That is "required" variance."
I don't think Jazz was so careless as to suggest that variance in strength is 'required.' No law states that this variance must exist. I would accept the statement that variance in fiber strength is natural, but not required.
There are two problems with Jazz's answer. First, he does not explain why our silkworms would suffer from genetic drift. This is a different issue from natural variation. Next, he does not explain why KBLB would need to measure the strength of our fibers, given the variance is natural.
Jazz might say, "Given the natural variation in fiber strength, if silkworms are not selected with care, we can find the average fiber strength declining over time due to genetic drift. By measuring the silk strength, we can select silkworms to mate that have the strongest silk and thereby realize generation-over-generation improvements in strength."
The only problem with that argument is that we can't measure the strength of millions of silkworms. There isn't enough time. Assuming it only took 5 seconds to measure the strength of a fiber, it would take 57 days to measure the strength of a million silkworms. Before then, we have to decide who to breed and who to harvest.
If the variability of our silkworms is so great that we have to test them (suggested by the fact we have sent equipment to Prodigy to do just that), AND we don't have time to test them, then there is a huge problem for KBLB. Obviously if 'genetic drift' was not an issue, there would be no need to send testing equipment to Prodigy.
Thompson can clear all of this up by simply informing investors about what is going on. But he is silent on the matter. Investors wonder why.