I did not say that the state was reversible. If you are trying to say that non-reversibility implies that state cannot be destroyed, we would need more than your TLDR.
The hoop from TL;DR; is that what happens with the simulation hardware has no bearing on the universe defined by the laws of the simulation. Reversibility is just an example. By changing simulation you just choose a different universe to look at.
It is not as simple. See Permutation City.
TL;DR; from a perspective of a person living in Game of Life, your time doesn't rewind when the computer running it rewinds the state.