Earlier quoted context omitted.
> There are whole regions of space with no actual observer. Those can be swapped to disk, What disk? Where is this disk? Suppose the universe contains 10⁸⁰ atoms. And we somehow figure out a way to store 10 bits of information per atom, giving our universe a storage capacity of 10⁸¹ How do you propose to simulate a universe that requires 10⁸¹ + 1 bits to describe? What disk are you going to swap the extra information…
Lazy algorithm and generator functions
If a region of space isn't observed, it's a big fat load of null. If it is observed up close, whatever persistent storage you use for that space can be wiped, when the observer ceases to exist.
Even now, when we observe close planetary systems, it isn't as if we are looking at all the atoms. We certainly aren't observing all the space on the planets. It's all mega fuzzy, and be therefore a fuzzy property. An approximation.
But of the observer population spikes, then too much would be observed and active at once... crash!