Hi Edwin,
> I'm not sure what you have in mind when you say it doesn't have to be "physical".
Simply that, a simulation does not have to represent within it the "hardware" that is running the simulation. Second Life does not have to have a large server room appear inside its virtual world. (Nevertheless, there is such a server room running the simulation. )
If the "physical world" of our senses is really virtual, then there is no necessity for the "hardware" it runs on to be in evidence. Yet it is still there, unobservable from within the simulation. If our physical bodies are like avatars in Second Life, we will search in vain within Second Life for the big server room. Yet the source of the simulation must exist.
> Of course one instruction set can simulate another instruction set and the simulation can simulate another instruction set and so on ad infinitum, but this only goes forward. There must be the original physical instruction decoder on which the whole chain is based.
We may have a terminological ambiguity and some resulting confusion. There are two different kinds of simulation.
Lets call Type (1) what you describe here: One instruction set can simulate (or emulate) another one via a process of translation. The decoders for both must be of the same type (if one is physical the other is also). This is true down any chain of decoders, as you suggest.
Type (2) simulation is when an instruction set is used in a more complicated way. It is used to model (via computational geometry) a virtual world, snapshots of which are rendered to create an illusion. In this case, the result of the simulation is of a different type from the input. Objects that appear in a movie are not the same as objects in the theatre, even if a moviegoer might get caught up in a movie and start to believe it is "real". We do not expect objects in the movie to be able to interact with objects in the theatre. So the objects that result from this kind of simulation are of a different type.
The "orignal instruction decoder" must exist. The question is whether it should properly be called "physical". If we take the word "physical" to be what we normally take it for, the kind of stuff that tables and chairs (and our CPUs) are made of, then I argue that the decoder need not be that kind of "stuff".
I am saying that the physical world is a Type (2) simulation not a Type (1) simulation. That is, when we look out at the physical world we form our idea of objects from observing the dancing colors on a kind of 3D display screen, just like a gamer engrossed in their game. We and our bodies are immersed in a 3D movie and do not see the "theatre" it is playing in.
So if objects in our 3D movie are known as "physical" what shall we call the objects in the "theatre"? I used the term "unobservable hardware basis".
Hugh