Yes, I wouldn't be surprised that there is some oral tradition among dolphins, but I don't think that issue is the key limiting factor for them. I think it is no "hands." Given their nomadic existence, and their dependence on superior hydrodynamics, I just don't see the localized evolutionary pressure to develop hands and the need or inclination or ability to "farm the oceans" or create complex hunting tools. And ultimately you must go beyond oral tradition, to create writing that can in essence preserve culture generationally.

Evolution is essentially a giant optimization program. However it does have its limits in terms of localized "hill climbing." I think sometimes there is just no way to get from point A (current speciation characteristics) to point B (say complex tool making ability) without too big of a leap. If a dolphin were to be born with extra limbs, it will get selected against (and evidently did in the past when it went back into the oceans from land).

Thanks for your point however, because I do agree dolphins do seem to have most characteristics to get there. As I said in my post I do find this an interesting topic, when you try to figure out what each species lacks to get to "civilization," as it seems many species possess many of the characteristics.

I find ants very interesting as they have group intelligence and have been extremely succesful creatures in virtually all habitats. Their hive mind creates fairly complicated structures and societies that farm and raise livestock. I believe ants once again show the evolutionary heritage of the chemical soup that has embodied all the game theoretical strategies to survive. I believe the limiting factor on ants was the ancestral decision to limit the closeness of cooperation of their basic cells to the insect level. Although their hive mind is impressive, they lack ability for the hives themselves to cooperate.