Clearly the notion is not absurd since it can be written about, talked about, and debated in a rational and logical manner. For something to be absurd it must be nonsense. Part of being nonsense is the inability to say anything sensical about it. No truth value can ever be established for something that is absurd for it is neither true nor false and there can be no way, no way ever, of establishing a truth value. Not because it is hard or confusing or any other reason, but because it is logically impossible. I think it is patently obvious that it might someday be possible to prove the truth of falsity of the simulation hypothesis. That is not to say we ever will or even ever could but it is certainly possible, therefore it is not absurd.
Good to see a piece by you again here by the way.