Interesting, but perhaps myopic. I don't think I buy it. I checked to see, and it appears they are presupposing a discrete system, which leads to absurdities. For example:
1) Light is both a wave and a particle
2) Zeno's paradoxes - they mostly rely on the misapplication of discrete/indiscrete systems
It makes sense for our current level of computer and software technology, but that in itself seems naive.
If anyone has a lot of time, and really really really wants to look into it, check out plasma dynamics/physics and fractals.
From the article:
To kick things off, the team of researchers from Bonn have speculated that the problem with all simulations is that they're discretized: to model a physical phenomenon, the real world has to be represented by separate points in time and 3D space. Sure you can make the distance between those points reeeeeeally small—but you still have to have this kind of grid.
From the first bold there, I think that things will immediately break down there, so they're basically proving that things break down in a discrete system. I don't think it shows that we are a simulation though.
For the second bold there, I'm not so sure that we can represent the world in 4D. I don't have any answers, but I do have questions.
For the third bold, it just goes back to my comment on systems above and 4D. Not so sure that's true.
Still, it was quite interesting. (I've not read the entire paper, and know that I won't have time to do so.) Stuff like this is always fun to think about~!