Can't we just do that in a computer and pretend that things were destroyed and killed? Maybe calculate the transfer of wealth that would have occurred as a consequence of inferior algorithms leading to the destruction of your virtual societies?
This only works when both sides are sufficiently advanced and willing to take part in the system. You would still need an army for when enemyCountryX decides that they can just pummel you because you're busy playing video games.
That was the basis of these thoughts, except for the fact that in that episode they would calculate the casualties and vaporize them; my idea is based on the pure transfer of 'wealth' that would have occurred through the destruction and re-allocation of the 'resources' from the 'loser' to the 'winner'. No actual death need occur directly due to violence but only through purely economic and financial means (job loss, starvation), similar to what has already happened after the last 'Financial Crisis' in developing countries.