It sounds like rhetoric to me. I wouldn't imagine it's been written by anyone actually doing any programming and I don't buy it.
I can say this with some confidence having programmed games professionally at the start of my career now consisting of almost two decades of software development; games developers need to be among the most efficient. Wasting CPU cycles "modelling" some mock real world simulation logic that has no bearing on the game-play or experience would be shunned. It sounds like a completely ludicrous idea for a product already in dire need of optimization.
Games programming is about providing an illusion and thinking out of the box. A typical interview question that I've seen is to write some back-end code for a virtual pet game world in which creatures need to be fed and petted or they increase hunger or decrease happiness over time. One answer might be to create a game-loop and tick increment those variables in real time, ok Sounds reasonable, that's how the world works right? time passes and we get more hungry with each passing moment, but a more efficient answer is simply store the time stamp each time the pet is fed or petted and infer the number of ticks that would have occurred only at the point the user interacts with it and calculate how hungry or happy it is then and update it... so in the game world a pet simply doesn't require any processing unless the player interacts with it when only a quick calculation is needed.
This is games development in a nutshell, the player imagines what is happening, the programmer delivers the illusion using as little computer power as needed.
If it isn't on the screen and in the game then it's probably not happening the way it's being marketed, it just sounds like the ridiculous nonsense PR spout to get consumers to put the product on a pedestal and make them believe it's this mythical detailed magical holy grail of video games.
How very fine indeed are the emperor's clothes.