wwa comments on Botworld: a cellular automaton for studying self-modifying agents embedded in their environment - Less Wrong
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It's not because a simple loop can alter a lot of space. It's because Core Wars world is crowded both in space and time. Make agents start a lightyear away from each other and/or make a communication/energy/matter bottleneck and all of a sudden it pays off to do a complex code analysis of your opponent!
That's exactly the same thing oly phrased concrete vs. abstract.
Thats an abstract formulation of my proposal to "Using a limit to the range of mov-instructions would have made a significant difference".