This is fascinating. This feels like a variation of the "turtles all the way down" paradox, where we would happen to find ourselves at the very bottom layer of reality.
The ideas here rely on a few assumptions:
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If simulations exist, there are likely multiple layers of simulations within simulations.
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There must be a limited amount of computational power, which would mean simulations at the lowest level would not be able to create further simulations.
If both of those are true, then either simulations are not possible, or we just happen to exist at the very bottom layer of simulations where further simulations are no longer possible... And the chances of that are incredibly slim.
Although I don't think this necessarily rules out the idea that we're in a "middle layer" but haven't figured out how to create simulations within this one YET... But I think the idea in the video is, until we've figured out how to create a simulation, it's far more likely that we live in a reality that simulations are not possible AT ALL than a reality where we just happen to be at the very bottom layer.
And if your challenge to the first point is that perhaps we DO live in a "single layer" simulation, in that we stem directly from a non-simulated "base reality", this runs very parallel to the belief in a spiritual realm and some sort of divine programmer.
On that note....
I would point out that one of the reasons many people believe we live in a simulation is because of how "programmed" everything appears to be. We have objective laws of nature, we seem to have bumped up against a few "limits" of our reality with things like the speed of light, the age of the universe, and the edge of the universe (even though that edge is expanding), and lastly, even within our universe, most of us agree that the existence of humans who can think rationally is highly improbable.
Specifically in regards to that last point, I've talked through line of reasoning with a friend that's similar to the video. His justification to overcome the improbability of our existence was that there could be infinite universes. In his view, that would mean there are universes that mirror our own so closely that only a small number of details are different, while in the vast majority of them, humans don't exist at all. That was his justification for the improbability of our existence. "Infinity overcomes improbability."
However, if that's the case, perhaps there are universes where we have a lifetime of memories in one moment, and an entirely different set of memories in another. Perhaps there are universes where we can use logic to a much higher degree, but due to an insane number of highly coincidental events, there just happens to be an insane amount of believable empirical evidence that the Flying Spaghetti Monster is real. If everything is possible, then what are the chances we happen to live in the one of the "few" universes where rationality is possible? To me, infinity seems to open up infinite cans of worms.
Anyway... The crazy thing I tend to believe is that there is a limitless and uncreated source of power and intelligence that exists in a higher dimension than our own, that gave us an ability to reason and think at least somewhat accurately. Seems like the best way to explain the seemingly "programmed" aspects of our universe and avoid variations of the "turtles all the way down" paradox. I've had friends call that "god of the gaps", but as far as I can tell, closing the loop requires faith in something we can't quite comprehend, whether that be the "first mover" or something we know to be highly improbable.