I wonder if the whole point of the joke is that you can only create an Escher Staircase when using a 2D medium to simulate 3D. In a true 3D medium, it breaks too many laws of physics (or rendering, in the virtual world).
Pip, of course, is a gamer geek and comic book nerd, not an artist, like Art. He doesn't know this limitation and is likely to drive himself insane trying to build the impossible. Art, meanwhile, should be building a high wall between their halves of the server because a frustrated madman is never a good neighbour.