> the simulation scenario requires assuming that our universe is not the "root" universe
Assuming by "simulation scenario" you mean the theory that there is a chance we are running in a simulation, it doesn't assume we aren't the root universe (but it does make a lot of other assumptions), just that of some number of realities both simulated (s) and real (r), our chance of being in a non-simulated reality is r/(s+r).
Some (but not all) of the assumptions required are: Simulated reality is possible, human level AI is possible, it's possible to simulate a universe to the level we are at before the heat death of the simulation running universe (or the simulation running universe has different constraints, more time or power, etc).
> Its the sloppiest possible train of thought, that starts with assuming most of its conclusion, and then proceeding by unwarranted leaps to conclude the rest of it.
I don't think it's quite that, and I don't think it assumes most of its conclusion. I think given the assumptions the argument takes for granted, then it's a valid argument. While I think many of the assumptions are probably, it only takes one of those, and a much greater likelihood to be true, to greatly affect the original calculation, but even then, you have to assume that if there's a parent universe, it follows the same laws, otherwise you can't assume anything.
Ultimately, the thing we all need to keep in mind is that it doesn't matter. We have no ability to control or predict the consequences of being in a simulation, and given that our universe seems ultimately to conform to laws, and not act in what appears to be a capricious manner, it's inconsequential in the truest meaning of the word.