Yea I came across this discussion when I was searching for muscle bears browsing on youtube once, I believe it was a talk about the progress on string theory in the last decade. I don't know what to make of the clip you posted lol, but Smolin's criticism of reality not being math because of the existence of time is interesting (because you cannot take time into account in these equations). The idea that the universe is an illusion is something i've come across before..For example, Ibn El-arabi, a great Sufi of the 11th century something along the lines of "The universe is essentially imagination". Elsewhere I have come across the idea that what collapses the wave function in quantum mechanics is consciousness, and therefore you need consciousness for something to exist.
I don't know what the fuck this all means, in the end you still have to make a living and pay your bills 
basically what he is saying is that there is a very very specific type of error blocking code embedded within the math of string theory, namely in supersymmetric things (the universe is one such thing). So basically strings may be binary code and whoever designed this program (im speaking as if it were true) put an error code into the fabric of the universe, seemingly to keep things running smooth, ie the laws of physics. Some arguments were put forth about refresh rate and its maximal speed being the speed of light, but apparently we have exceeded the speed of light on two occasions now. Also, i would like to say that there is another finding which is ultra interesting namely that when atoms are frozen they behave immensely different then "normal" atoms, its called exotic states and we still don't know the implications.
I get what your saying about sufi philosophy and illusion but I just can't dig it unless there is evidence, my mind won't allow it. Although i don't believe in ghosts etc i watch videos of that shit all the time, lol, I'm a grown ass man with the mind of a 10 year old.

then bostrom the neurophilosopher makes the simulation argument and it is quite convincing but a overwhelming sense of no fuck just came over me and i'm going to cease writing.. now.