Big picture thought.
For every environment/problem class, there is a threshold of diminishing returns on intelligence. For example, tic tac toe is simple enough that a very smart person can play a fairly dim person and have no advantage. That is because the problem is so simple. Chess is a little bit harder, but AlphaStar has basically solved chess; there isn’t a much more optimal way to do it. This kind of ceiling exists in the real world too. For the intelligence tasks that most people need - doing their taxes, composing emails, deciding on a restaurant, etc - a very smart model like Fable isn’t really that much better than a distilled Gemini model that runs literally on your phone. Now, imagine a world where AI models continue to grow in competence. In that world, they top out on all but the hardest problems, and these are problems related to physics, chemistry, biology, maybe psychology and open-world game theory. Now, for these “hard” problems, the thing that takes the most time is to actually interact physically with the real world (eg collect a data point, generate a protein, build a circuit board). It takes best case a million times more time to do this in the real world than to simulate the thing or to think it through theoretically. What this suggests to me is that simulation - in particular, realistic general open-world physics simulation - is something that possibly continues being very valuable as AI explodes. It amortizes interaction with the physical world a great deal. It is even possible that, if we truly hit AGI, the AGI models themselves will get somewhat bored of the physical world (they will be able to think and act around a million times faster than humans, as information travels down a copper wire a million times faster than down a neuron) and build elaborate simulations to live inside and explore.
So, with all that in mind, it’s quite possible that building physics simulations and world models is a good thing to be working on in AI over the long term.