> It is possible for technology to simulate consciousness and human civilization at scale

We know it is possible because consciousness, if whatever we call "consciousness" is actually a thing, is currently being generated/run "organically" in the world we occupy. There's no reason to believe it can happen in this universe but not inside a computer in this universe.

An argument that tries to refute a fairly dumb argument in favor of an idea does not, in fact, negate the idea.