But random side question: is Mars considered "earth-like"? Or are these Earth-like planets even closer in composition and temperature to Earth?
A relatively cheap one, considering that if this planet is the only one inhabited, the other star systems can be approximated and don't require full simulation.
Consider that time slows down when the speed is increased. This would be a good thing to do to restrict the computational requirements. And there's growing evidence that everything is quantized. Given that we probably can't measure anything smaller than a Planck length, that's the simulation resolution.
That's probably not what's going on (the simulation hypothesis could be the 'magnetism' of our era) but it is fun to think about.
Maybe we're in a functional test of a simulation of a universe? That'd explain the lack of signals from other civilisations...
A common refutation of the simulation hypothesis is that the computer would have to be impossibly large.
Not so. As long as the host universe has different physical laws. For instance, simulating Minecraft using Minecraft redstone logic itself would probably take an impossibly large "computer". Yet, we can do that easily, as we have nanoscale transistors.
Similarly, add just one more dimension to the host universe and you could build amazing machines (imagine instead of a 3D circuit board, a 4D, with all the extra arrangements it could provide). The host universe could be even crazier than this, with a whole different set of physical laws.
Unless we find a sandbox vulnerability, we'll probably never know.
Or maybe the vastness of space and the physics that govern it (e.g., speed of light) ensures that life can never reach the end, or even see it. Kind of like how in Minecraft you can run in any direction and it'll just generate more land. Your run speed is no match for the Minecraft simulation.
It's still ultimately an unsatisfying idea though, since the next question is: What's outside the simulation? i.e., Where did God come from?
That's probably a decent argument against the existence of a god