I will argue that the hypothesis that I am envatted is not a skeptical hypothesis, but a metaphysical hypothesis. That is, it is a hypothesis about the underlying nature of reality.
Where physics is concerned with the microscopic processes that underlie macroscopic reality, metaphysics is concerned with the fundamental nature of reality. A metaphysical hypothesis might make a claim about the reality that underlies physics itself. Alternatively, it might say something about the nature of our minds, or the creation of our world.
I think the Matrix Hypothesis should be regarded as a metaphysical hypothesis with all three of these elements. It makes a claim about the reality underlying physics, about the nature of our minds, and about the creation of the world.
In particular, I think the Matrix Hypothesis is equivalent to a version of the following three-part Metaphysical Hypothesis. First, physical processes are fundamentally computational. Second, our cognitive systems are separate from physical processes, but interact with these processes. Third, physical reality was created by beings outside physical space-time.
Importantly, nothing about this Metaphysical Hypothesis is skeptical. The Metaphysical Hypothesis here tells us about the processes underlying our ordinary reality, but it does not entail that this reality does not exist. We still have bodies, and there are still chairs and tables: it's just that their fundamental nature is a bit different from what we may have thought. In this manner, the Metaphysical Hypothesis is analogous to a physical hypotheses, such as one involving quantum mechanics. Both the physical hypothesis and the Metaphysical Hypothesis tells us about the processes underlying chairs. They do not entail that there are no chairs. Rather, they tell us what chairs are really like.
I will make the case by introducing each of the three parts of the Metaphysical Hypothesis separately. I will suggest that each of them is coherent, and cannot be conclusively ruled out. And I will suggest that none of them is a skeptical hypothesis: even if they are true, most of our ordinary beliefs are still correct. The same goes for a combination of all three hypothesis. I will then argue that the Matrix Hypothesis hypothesis is equivalent to this combination.