> So it wouldn't make sense that an observer in such a universe would exist to observe the simulation as he would be a system without the capability of observing anything outside of himself
I can easily simulate and observe systems without influencing them as they run. I may have the means to influence them, but it doesn't mean that I have to use them. In fact, many simulations in this world are performed for the exact purpose of inspecting what the end result is going to be without interfering while they're being run.