What I would say is that this 'evolved' simulation (as he refers to it) was programmed within the 'seed' that started it...
The 'evolution' of it is based on that original programming.
That's my only critique on anything he's saying.
9:00 I would have to expand that metaphor out to encapsulate the universe...
First the baby realizes that's its hand, then eventually, the human should realize it's connected to all the rest of existence in the same way, and this realization/expansion should never stop.
It's funny listening to this because he keeps mentioning World of Warcraft and I'm playing WoW right now... *giggle*