While I'm not in any way an expert in simulation making, wouldn't it seem just a bit too convenient that, in all the monstrous computing power behind making the universe run, the Overlords couldn't devise a pretty clever and powerful algorithm that would have found us already? Maybe you can help me see why there would only be a crude algorithm that superintelligences should fear being caught by, and why they wouldn't have considered themselves caught already.
Apart from this, I'm in agreement with other commenters that a stronger argument is the vastness of space.
Overlords couldn't devise a pretty clever and powerful algorithm that would have found us already?
Maybe the overlords are very, very, different life forms than us, and so they don't know what to look for other than large scale statistical anomalies?
But I must admit, this is a weakness of the hypothesis.
An uplifting message as we enter the new year, quoted from Edge.org:
A few thoughts: when considering the heavy skepticism that the singularity hypothesis receives, it is important to remember that there is a much weaker hypothesis, highlighted here by Tegmark, that still has extremely counter-intuitive implications about our place in spacetime; one might call it the bottleneck hypothesis - the hypothesis that 21st century humanity occupies a pivotal place in the evolution of the universe, simply because we may well be a part of the small space/time window during which it is decided whether earth-originating life will colonize the universe or not.
The bottleneck hypothesis is weaker than the singularity hypothesis - we can be at the bottleneck even if smarter-than-human AI is impossible or extremely impractical, but if smarter-than-human AI is possible and reasonably practical, then we are surely at the bottleneck of the universe. The bottleneck hypothesis is based upon less controversial science than the singularity hypothesis, and is robust to different assumptions about what is feasible in an engineering sense (AI/no AI, ems/no ems, nuclear rockets/generation ships/cryonics advances, etc) so might be accepted by a larger number of people.
Related is Hanson's "Dream Time" idea.