JoshuaZ comments on Harry Potter and the Methods of Rationality discussion thread, part 5 - Less Wrong
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If the simulation is filling up that might make time travel less powerful but I don't see why the processing/resource constraints should make other forms of magic also need to be restricted.
(fixed simulation resources / increasing population) = less magic per person
(fixed simulation resources for magic / increasing population using magic simultaneously) = less spare magic at any given moment
Were the sort of ideas I was thinking. But, if it's a simulation it needn't compute in realtime, so it is a weak suggestion.