Posted 28 February 2013 - 10:51 AM
I'm not sure that the Buddha's teaching about non-self and sensate existence being an illusion and the idea that the universe is a simulation are really the same thing. At any rate, I doubt the Buddha had any sort of information processing in mind.
The Buddha teaches us something more basic, namely that what we think we perceive in the world around us is mostly illusion, with a little delusion slipping in. An illusion is something that is not real but that has a real thing that generates it. Thus we perceive that the sky is blue. Now "blue" is entirely an invention of our minds -- there is no such thing in the external world. There do exist, however, certain electromagnetic wavelengths which, when they impinge on our retinas, generate processes in us that end up with our perceiving blue. This is the teaching that the world is an illusion, that what we perceive with our senses is invented by us and what is "really" out there is quite different. I don't think there is anything particularly mystical or difficult about this, just that it is a brilliant insight.