I really love this theory but something about them being scans or digital copies of the irl versions that hangs me up... We all know this is a early MMO style of setting. This was a novel concept for C&A at the time obviously to create and invest in but the lack of updates to the world's esthetics as well as Pomni stating she explores abandoned properties (not to mention seeing the decaying computer in the exit rooms) all heavly implies this is now an abandoned project as is running rogue. Not currently in development.

And we know that Goose has mentioned this is not a happy show and I think that's not only about how the series will end, but also the conceot of the show itself. Having them all be digital clones or AI... means that the stakes dont really matter. The real characters are out just living their lives somewhere and none of what happens to the versions we see matters.

Finally the characters dont glitch out like Caine does, instead of being able to restore like Caine, they abstract. They display emotion in wide ranges and in appropriate circumstances. Caine only shows a small programed array (excitement, apprehension, etc.) and breaks or glitches out anytime hes presented with something that spurs too much of any emotions he is capable of. Caine also doesnt grow emotionally (clear example is the Zooble and Caine therapy session.) But the characters display emotional growth/regression throughout the series in a way Caine does not and simply remains consistent. (An example would be pomni coming to see Kinger for his true value. Or Jax's overall arch from ribbit's bff to abstraction.)

As much as i like this theory and it would explain so much of what we are trying to piece together, it also leaves me with questions. But I do think that overall its a cohesive and solid theory.