Simulation Theory is nothing more than an interesting thought, though it is quite interesting. The main problem here is that there is nothing philosophically sound about it at all. You make way too many leaps founded in nothing but empty speculation for it to hold any kind of water.
First and foremost, you use “crude simulations” like The Sims and GTA to extrapolate into a future where we have simulations that mimic our human existence. There is absolutely no basis for such a leap of faith, and certainly not the application of Moore’s Law, which speaks of the increase in technical power, not of the realness of these simulations (the two may be in some way correlated, but there’s no data informing us that more powerful machines will lead us to life like simulations.)
You use such strong language in this piece — words like “likely” and “forced.” There is nothing “likely” about what you propose, nor are we “forced” to come to any conclusion you propose. Nothing you propose is supported by logic, only by speculation. Your leaps of faith put you in the category of a true believer (and that’s not a bad thing!). You take on faith certain primary principles that are unreasonable to assume normally, and so build a cosmological house of cards.
That being said, it’s a fun theory. It might even be true. But there’s absolutely no more truth to it than the Christian story, or that of the Mayans or the Mormons.