The goal is to eventually be able to model physics and all the various interactions accurately.
I don't doubt they're trying to create a world simulator model, I just think they're inadvertently creating a video game simulator model.
It is interesting to think about. This kind of training and model will only capture macro effects. You cannot use this to simulate what happens in a biological cell or tweak a gravity parameter and see how plants grow etc. For a true world model, you'd need to train models that can simulate at microscopic scales as well and then have it all integrated into a bigger model or something.
As an aside, I would love to see something like this for the human body. My belief is that we will only be able to truly solve human health if we have a way of simulating the human body.