The simulator doesn't have a camera. The android emulator allows to configure the camera and use a picture, it's very handy to test your qr/barcode reader without needing to use a physical device. Maybe this also allows to use an image as camera?

You cannot run Network Extensions on the simulator

You can test your application, game, website without a physical phone?

Spam. Click farms. Etc.

If functional, you can download apps from the App Store, sign in to iCloud.. probably do a bunch of agentic stuff as if you had a real device