I'm studying so I don't have time to dissect all of that, so here's GPT-4's take on the matter:

It's certainly fascinating to engage in these thought-provoking discussions, and I appreciate your insights. However, I'd like to challenge you on some points and propose a different line of reasoning.

While the simulation hypothesis is an intriguing concept, I'd like to draw our attention to the principle of Occam's razor, which states that the simplest explanation is often the most likely. This principle could be applied to our current discussion. Instead of positing the existence of higher-dimensional beings and infinitely regressing simulations, we could consider the possibility that our universe is the base reality, operating under the natural laws we are still striving to understand.

That being said, I do recognize the importance of exploring different philosophical perspectives, as they can contribute to our understanding of reality and broaden our intellectual horizons. To that end, I would propose we examine the concept of panpsychism – the idea that consciousness is a fundamental aspect of the universe, akin to space, time, or matter. This approach could potentially offer a fresh perspective on the nature of reality and the relationship between the physical and the mental realms.

One could argue that if consciousness is indeed a fundamental aspect of the universe, the boundary between "simulated" and "real" might become blurred. In a panpsychist universe, every conscious experience, whether arising from a simulation or not, could be considered equally real and significant. This viewpoint could offer a different way to frame the questions we've been discussing.

In conclusion, while I remain somewhat skeptical of the simulation hypothesis, I agree that it's crucial to explore different ideas and theories to deepen our understanding of reality. Let's continue to challenge one another and engage in stimulating discourse, as it ultimately enriches our perspective and contributes to our intellectual growth. By considering various theories, such as panpsychism or even solipsism – the idea that only one's own mind is sure to exist – we can expand our understanding of the nature of reality, consciousness, and the seemingly endless complexities of the universe.

I think this line of reasoning is pointless, or at least it has unnecessary steps. What is the nature of the reality of that prompter? Is his the ultimate reality? How did that reality come about? The same questions we ask about our reality would still persist. It's an endless, paradoxical loop

You waste too much time trying to explain this reality with a simulation theory. You know why? Because even if we assume there are higher dimensions with "living beings", we would still need to explain their existence and thus we end up in the same place. They would be asking the same questions about their reality as us. So what is the ultimate reality? What is the origin of everything? What is everything? It is an endless, paradoxical loop that has no answer. That's where the existencial crisis kicks in.