Do note that "reconstruction" is not the right word, the proper characterisation of that sort of imputation is "artist impression": good for situations where the precise details doesn't matter. Though of course if the details doesn't matter maybe blurry is fine.
Well, yeah, if the details don't matter then you don't need "highly-capable simulators of the physical and digital world". And if the details do matter, then good luck having a good enough simulation of the real world that you can invoke in real time in any kind of mobile hardware.