To what level have we added new DNA information or grafted two species together to create a 3rd species?

You overthought the problem. We have observed spontaneous addition of three copies of novel gene to population of yeast over a span of a few thousand generations. Although you "believe the evidence is overwhelming that DNA does not allow an upward spiral over time in gained DNA content", the evidence shows otherwise. This was not gene manipulation. This was a spontaneous response to the conditions in a controlled environment, so "Intelligent manipulation" does not apply.