If everything we know is "simulation" then what is the meaning of "real" in this context? What is the distinction?
Zizek says physicists say quantum physics means that reality is not totally filled. It's like a computer game where the background is not defined unless you zoom in. Only when you zoom in does the program decide how to fill out the picture. Reality is said to exhibit a similar phenomenon where its subatomic constituents are not fully defined unless observed. I don't know how accurate that is, but again it makes you wonder about the usefulness of the distinction between reality and simulation.
Perhaps the main implication of viewing the world in this way is that it seems to make the presence of some sort of God like programmer more natural.