The simulator only runs intel versions of iOS apps and cannot run true iOS apps which are arm64 binaries. This is Google's use case for testing Chrome and Golang on a truly virualized iOS device capable of running these executables. The iOS simulator cannot do this.
For testing smaller applications, the simulator is sufficient for that purpose, but for more complex applications almost always requires a real device. Also some features like in-app purchases are unavailable in the simulator, making it harder to test such features.
The real reasoning behind why Apple uses a limited version of the simulator is unknown to everyone, but these limitations have forced developers to purchase real iDevices just to test certain features either when Apple ends support for a device or an iDevice doesn't support a certain feature.
Corellium takes this further and fully virtualizes the iDevice on any version and it has the options to configure the state of the iDevice and allows automation and tests to run on the device. You may think of it like what Docker did to web apps is what Corellium has done for iOS and Android apps.