From what I've heard the entire point of SimTown Online was this low level simulation of sims. If that's busted then it sounds like a pretty big deal.
I haven't been following this whole thing that much but I believe EA has specifically touted the AI in this game saying things like each sim living out an actual life. Which is clearly bull.
Mh, never saw that used as a major selling point myself, but if that's the case, yeah.
That's really stupid to promise that though, the processing power to actually achieve that sort of thing would be fucking ridiculous. Game would be unplayable