I'd also be interested in your moral distinction between having children and cloning consciousness (in particular in a world where the latter doesn't result in inevitable exploitation, a loss of human rights etc.) then.
Typically, real humans have some agency on their own existence.
A simulated human is entirely at the mercy of the simulator; it is essentially a slave. As a society, we have decided that slavery is illegal for real humans; what would distinguish simulated humans from that?