[jerf]

No, this concept does not fail to account for that. It explicitly accounts for it; things examined more closely are rendered with more fidelity.

The simulation would still be a complicated program beyond our ability to understand, but there are information-theoretic reasons to believe it's of a finite complexity, of a size that a more intelligent being might find perfectly manageable.

Human sensoriums are information-theoretically bounded to be quite a bit smaller than you may think. People often don't really "get" how information works. It doesn't matter than the particle accelerator has numbers on a screen that claim it's collecting petabytes of data per second... you aren't collecting petabytes of data per second. All you ever see is a tiny slice of that thing's output, bounded by the amount the screen can carry and you can perceive. A minimal simulation of the accelerator's output is a great deal smaller than the actual data it is collecting. The bare minimum information necessary to simulate your sensorium is not really all that much, on the order of something that could fit on a modern Wifi signal, and not ever necessarily the latest standards. While we have no idea how to write a program that could simulate it as if a universe was behind it for that cheap, that doesn't mean no entity in the multiverse does.

The game analogy is a bit deceptive in that it invites you to imagine it all works exactly like modern games, but you have to imagine something wildly more sophisticated, and while not necessarily "unbounded" in resources, certainly a great deal more blessed than any current computer cluster we have.