It's a much older idea than that. One of the best stories on it that I've read is by... Ray Bradbury, perhaps? I'm not sure. It's about a long dead classical composer whose personality and memories are reconstructed inside a living person's brain. He remembers his life, he remembers writing music and even remembers dying... but discovers that he can't compose anything new. Anyone know what I'm talking about?
Vaguely remember as well. I recall a girl doing research on this person on the nth floor of library -- that is somehow connected. This person is simulated in a virtual world, and then realizes he's a simulation when he cannot compose anything new. The realization occurs amidst Greek or Spanish architecture during a sunrise. Same story? But which?
I probe my brain for another clue... I learned the word "hegemony" while reading this book. Googling "hegemony" and "science fiction" eventually gives Hyperion by Dan Simmons. Google...
Go see for yourself.
The complete post is quite long and just as good as this quote.