I just happened to stumble upon an article on this "theory" in Wikipedia, it sounds interesting but there's a quite obvious question I could not find answered, which I do not doubt was raised before. Namely, would conservation of energy still hold true in this "procreation" process?
1. If it does not, meaning that energy = matter can appear from nowhere, why invent all the complexity (Occam's rasor)? Any universe can just appear out of nowhere anytime (if there's such a notion as time anymore) and simply by the law of the chance, some of them will have conditions suitable for life.
2. If the energy is indeed preserved, then a child universe will only have a fraction of the energy/matter of its parent. The division process will only go on until finally none of the descendants will have enough matter to form one black hole. Even more importantly, collapsing the division chain backwards we're bound to get, in a finite number of iterations (each universe have finite amount of energy/matter therefore can form only finite number of offsprings), to the original proto-parent universe which had no ancestors. Unless the original universe had infinite mass in which case conservation of energy cannot hold, go to p.1.
But if its mass is finite, and it did not descend from any parent, it had to come into existence through some other process! Welcome back to bing bang (nothing's gained / explained).