Lyric discussion by foreverdrone 

Cover art for Wormhole lyrics by Guided by Voices

I would guess Bob heard the word "wormhole" in the usual science (or science fiction) context, and thought, "That might be a good idea for a song..."

This sounds purely literal -- imagining what it would be like to be a worm.

Which suggests a kind of universal love, to be able to identify so closely with a creature from which many people recoil in disgust.