Sure, but think in terms of observers. From the perspective of the universe that the simulators end up keeping there's only one universe, the one where the simulators got what they wanted.
But at any given time you may be in a branch that's going to be deleted or rewound because it doesn't lead to the results that the simulators want. The vast bulk of our experience would be in lines that the simulators don't want. So not only do we have no reason to suppose it's happening, it wouldn't be particularly useful to us if we suppose that the branch the simulators want is better for us than the ones they don't.
I concede that my understanding of the requirements to project a simulation of our universe may have been mistaken, but the conclusions jacob cannell drew are still extraneous additions to the simulation argument, not necessary consequences of it.
Which are the 'extraneous additions'?
Omniscience and omnipotence have already been discussed at length - the SA does not imply perfection in either category on the part of the creator, but this is a meaningless distinction. For all intents and purposes the creator would have the potential for absolute control over the simulation. It is of course much more of an open question whether the creator would ever intervene in any fashion.
(I discussed that in length elsewhere, but basically I think future posthumans would be less likely to intervene in our histor...
Many folk here on LW take the simulation argument (in its more general forms) seriously. Many others take Singularitarianism1 seriously. Still others take Tegmark cosmology (and related big universe hypotheses) seriously. But then I see them proceed to self-describe as atheist (instead of omnitheist, theist, deist, having a predictive distribution over states of religious belief, et cetera), and many tend to be overtly dismissive of theism. Is this signalling cultural affiliation, an attempt to communicate a point estimate, or what?
I am especially confused that the theism/atheism debate is considered a closed question on Less Wrong. Eliezer's reformulations of the Problem of Evil in terms of Fun Theory provided a fresh look at theodicy, but I do not find those arguments conclusive. A look at Luke Muehlhauser's blog surprised me; the arguments against theism are just not nearly as convincing as I'd been brought up to believe2, nor nearly convincing enough to cause what I saw as massive overconfidence on the part of most atheists, aspiring rationalists or no.
It may be that theism is in the class of hypotheses that we have yet to develop a strong enough practice of rationality to handle, even if the hypothesis has non-negligible probability given our best understanding of the evidence. We are becoming adept at wielding Occam's razor, but it may be that we are still too foolhardy to wield Solomonoff's lightsaber Tegmark's Black Blade of Disaster without chopping off our own arm. The literature on cognitive biases gives us every reason to believe we are poorly equipped to reason about infinite cosmology, decision theory, the motives of superintelligences, or our place in the universe.
Due to these considerations, it is unclear if we should go ahead doing the equivalent of philosoraptorizing amidst these poorly asked questions so far outside the realm of science. This is not the sort of domain where one should tread if one is feeling insecure in one's sanity, and it is possible that no one should tread here. Human philosophers are probably not as good at philosophy as hypothetical Friendly AI philosophers (though we've seen in the cases of decision theory and utility functions that not everything can be left for the AI to solve). I don't want to stress your epistemology too much, since it's not like your immortal soul3 matters very much. Does it?
Added: By theism I do not mean the hypothesis that Jehovah created the universe. (Well, mostly.) I am talking about the possibility of agenty processes in general creating this universe, as opposed to impersonal math-like processes like cosmological natural selection.
Added: The answer to the question raised by the post is "Yes, theism is wrong, and we don't have good words for the thing that looks a lot like theism but has less unfortunate connotations, but we do know that calling it theism would be stupid." As to whether this universe gets most of its reality fluid from agenty creators... perhaps we will come back to that argument on a day with less distracting terminology on the table.
1 Of either the 'AI-go-FOOM' or 'someday we'll be able to do lots of brain emulations' variety.
2 I was never a theist, and only recently began to question some old assumptions about the likelihood of various Creators. This perhaps either lends credibility to my interest, or lends credibility to the idea that I'm insane.
3 Or the set of things that would have been translated to Archimedes by the Chronophone as the equivalent of an immortal soul (id est, whatever concept ends up being actually significant).