What's in our heads has only a vague resemblance to what goes on and even worse isn't in the same timeframe.
Virtualization starts already in the retina. It has quick firing, slow firing, steady state you name it kind of neurons making the image already preprocessed before it even leaves the eye. Most of your vision is behind the sequence of events as they unfold already and yet has to enter the brain.
After being tapped by the limbic system the information is further manipulated, massaged and redacted. First on a very basic level, certain neural networks only see straight lines, others only see diagonals etc. Then when a bigger picture is synthesized it is being compared to previous images and store memory to fill in missing parts and make sense of it.
The resulting image is then passed on to your higher order preprocessing centers to make it fit in with the ongoing story being told by your 'you'.
That 'you' is already behind the actual goings on be about 0.5 to 1 second since that's the time it takes for all the data to be processed and presented to 'you'. (tests during open brain surgery have shown that lag between corporal action and conscious awareness)
So to all intents and purposes 'you' is a virtual entity.
As for all the stacks of spirits, i also see that as a major obstacle for the existence of actual dead people floating about. It was calculated once that we walk on a layer of 3 meter thick human dust if you calculate cadaver volume*total ever existed population.
If there is a real spirit world it must have some serious bunkbeds.
