Earlier quoted context omitted.
Oh wow. Maybe that can be a new scale measure of technological capability based on how much of reality we can perfectly simulate.
If you think about it, a computer's not going to be able to perfectly simulate it's own physical operation, so the limit of a system's ability to simulate things is it's own complexity.
Consider programs that are quines, programs are able to output the exact source code of the program. See [1].
And there are abstract computers that can produce any computable output. These are called Universal Turing Machines, see [2]. UTMs can be specified with a remarkably small number of internal states, see [3].
I’m not saying you are wrong, but computability is full of unintuitive results, and the answer may be more subtle than what is revealed by “just thinking about it”.
[1] https://en.m.wikipedia.org/wiki/Quine_(computing)
[2] https://en.m.wikipedia.org/wiki/Universal_Turing_machine
[3] https://en.m.wikipedia.org/wiki/Wolfram%27s_2-state_3-symbol...