It's a hypothesis, not a theory. It never sets out to make any testable claims at this point, it's just a possible explanation that might warrant future thought. Not much different from the various interpretations of quantum mechanics or even some of the more grand, amorphous theories of physics, like string theory.
In the future, the hypothesis could spawn interesting testable theories. For example, finding a bug or, for lack of better term, VM escape exploit.
But yes, right now it's a philosophical idea rather than a physics theory. That doesn't make it worthless or a religion. Unlike a religion, it lacks any proscriptive elements that would inform how you live your life.
> Unlike a religion, it lacks any proscriptive elements that would inform how you live your life.
I mean if you jump out of the window gravity will kill you that's proscriptive enough. You live under the rules that are present in your universe, world or simulation. Rules in our world and universe are rules of physics, chemistry and biology.
The appeal of simulation theology is the same as for most theologies: it means we aren't responsible for our choices or their consequences, so anything goes. It's easy to see why Elon, Jeff, Markz, Larry or 45 would go for that, but not why we would want to indulge them.
Whatever the foundations of the universe we find ourselves in, we can choose to take responsibility for all our actions, and then simulation or no doesn't matter. Otherwise whoever runs it is responsible, and all unpleasant consequences are imaginary, and turning it off is the easy remedy for everything.
So, it's not just theology; it's the worst kind of theology, the kind that gives theology a bad name. There was absolutely no shortage of that kind before. More of it is unambiguously worse.
It's essentially a fun party trick for nerds. Talk about some cool sci-fi sounding philosophical theory and look how smart and informed you sound to the average person!
I hate how short sighted are some physicists when they say there is no way to simulate universe on a computer. We couldn't simulate freaking spreadsheet on a personal computer until 40 years ago. Quantum computer is just one of many computers that human civilization will invent and use. There will be all sorts of different computers with different powers and use cases.
In the future, the hypothesis could spawn interesting testable theories. For example, finding a bug or, for lack of better term, VM escape exploit.
But yes, right now it's a philosophical idea rather than a physics theory. That doesn't make it worthless or a religion. Unlike a religion, it lacks any proscriptive elements that would inform how you live your life.