If that simulation was molding itself to our expectations and the blind man's assumption was what prevented him from passing through walls, then it would be our expectations (and the man's assumption) that are the causes of that molding. Of course that we cannot see causality – we “see” our mind(s), but, as far as I get it, not even James dismissed causality as such, he merely talked about mental causation (see here or here).

So, causality is still unaffected. And if causality turns out to be completely mental, it only means that minds are constrained beyond what we are able to influence – there was no known example of anyone escaping physical death.

Even mythological characters who resurrect always die, and in the case of those who are presumed to be alive (e.g. Biblical Elijah), their death is merely postponed and they are expected to go through the process of dying in the end no matter what. Rebelling against that is the epitome of Sisyphean blunder and his story is pretty edifying and poignant in this regard.

To quote from Castaneda’s Active Side of Infinity, “What is wrong with us human beings, and has been wrong since time immemorial, is that without ever stating it in so many words, we believe that we have entered the realm of immortality. We behave as if we are never going to die - an infantile arrogance. But even more injurious than this sense of immortality is what comes with it : the sense that we can engulf this inconceivable universe with our minds. […] We are beings on our way to dying. We are not immortal, but we behave as if we were. This is the flaw that brings us down as individuals and will bring us down as a species someday.”