[joshfee]

Isn't that true for any scenario previously unencountered, whether it is a digital simulation or a human? We can't optimize for the best possible outcome in reality (since we can't predict the future), but we can optimize for making the best decisions given our knowledge of the world (even if it is imperfect).

In other words it is a gradient from "my current prediction" to "best prediction given my imperfect knowledge" to "best prediction with perfect knowledge", and you can improve the outcome by shrinking the gap between 1&2 or shrinking the gap between 2&3 (or both)