On my machine, the initial state isn't simulated. It only begins simulation when I touch it. At which point, the weight causes the bottom blocks to intersect each other significantly.
If I open it, click on the background to activate the physics and just keep the tab open, pretty much all of the blocks that can collapse do eventually collapse.
One more pedantic nitpick: when a block gets wedged between two blocks at an angle, it gets slowly pushed out, although there is a lot of weight resting on the top block. That would be realistic only (maybe) if the blocks were made of ice, but not for other materials...
Nah that's just the effect of turning on the simulation. The initial version isn't the same as the first steps because there's no weight. If you look closely after you click the blocks overlap slightly.
Something similar happens all the time in games when you go from a static version of something to the higher level of detail version with physics enabled, if the transition isn't handled gracefully or early enough you can get snapping.