A computing system includes: an inter-device interface configured to receive receiver signal for communicating serving content contemporaneously with interference signal; a communication unit, coupled to the inter-device interface, configured to: determine interference communication scheme for representing the interference signal included in the receiver signal, and generate channel feedback information based on the interference communication scheme.A method of operation of a computing system includes generating an interference-based feedback mechanism with a control unit based on a negative feedback count, a serving metric set, a negative feedback count, or a combination thereof for controlling the channel feedback information.