Quite - it has similar logical and philosophical flaws to the Simulation Hypothesis.
David Chalmers, the philosopher who named the 'Hard Problem' of consciousness, is currently working on a book, working title, 'Reality 2.0', which will be a detailed philosophical examination of Matrix-style artificial and virtual realities; he thinks, "... virtual reality, simulated reality is a genuine kind of reality. It’s not a fake or a second-class reality." I'm inclined to agree, from the insider's perspective - after all, we already live in a virtual reality of sorts - one that our brains construct from the neural spike trains coming from our senses. The world we think we see is a prediction, constantly corrected by sensory information.