Excellent post.
I reject the simulation as entertainment idea. If we were intelligent enough to create such a simulation then surely we're intelligent enough to not trap ourselves in a single simulation that could be a nightmare for us. We would be able to create multiple realities to why would restrict ourselves to such a rubbish on as this?
If I'm living in a simulation, I want out so I can explore all the other simulations that surely exist. Given that my life ambition is to become a synthetic entity why would I enter this simulation without an exit strategy?
Also, we can create our own VRs today. They may not be perfectly realistic but they're still VRs. If we are living in a simulation then it must be possible for simulations to be nested.
Interesting question.
Why indeed would we choose to enter a simulation as entertainment yet have no way to exit immediatly.
Unless, of course, there was some "error".
Say, a hardware error that has disconnected your "real" memories from your virtual self, leaving you with only the memories formed in the simulation.
or some people choose to live uncountable lifetimes in "permadeath" mode for fun, but gradually lost track of the fact it was even a simulation, believing the "real" world to be naught but a dream.
I can imagine lots of ways an entertainment life sim could go awry XD
Oh, nested simulations. The rabbit hole that never ends !
I wonder what worlds VR can dream up now that VR platforms like Sansara are getting close to release... I'm pinning for super realistic escape room scenario's XD