Still cool, but more curious to understand how this works, and if it’s actually able to pull it off “legitimately”.
If you zoom in sufficiently, you can see that the "giant pixels" are really streams of spaceships, arranged in carefully positioned rows and columns that annihilate each other along the pixel's diagonal. These streams can be turned on or off to form the "display" component of each pixel, which is controlled by other parts of the pattern that do the actual computation.
As you zoom in or out, the simulation speed changes. A pixel seems to undergo a discrete state change when zoomed out, but when you zoom in and slow down, you can see how that change is actually executed by many underlying computational steps.
Other links in this thread go into more detail about how it works. The cleverest part is that the simulation is done in (more or less) "constant time" per frame, no matter how deeply you zoom or how fast you accelerate time.
The board appears as if there exist at any time infinite levels of cellular automata going all the way down running things. In fact, they only compute one level deep and then short-circuit to using the "hardcoded" rules of Conway's life, and simply pop up the higher or lower levels on demand.
In a metaphorical way, it reminds me of the "tying the knot" trick in pure functional languages like Haskell, to turn an infinite computation into a finite data structure.
Despite the fact that you can never actually add up an infinite number of terms one by one, you can however, compute what the limit of the sum will be in a finite amount of time. The same principle applies to this simulation, in which it is computing the limit of the process.