It depends how you view it. Like you say, simulation theory is not much different that theistic views of the world. There's no reason to inherently feel negatively, or dreadfully, about a possible simulation explanation for reality. If anything, it can be empowering to think that our biggest fears are illusory (at least to a certain degree), and that we can overcome the things that hold us back by understanding how temporary and finite our fears are.
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