These games have the opportunity to instill wonder and awe in the player via imagination, in addition to being able to incorporate some of the depth that simulators often have as well. You can get a better blend of both worlds this way.
If I wanted realism, I would go out into the real world instead of sitting in front of a computer.
Most arcade games have no limit to how powerful, fast or great your characters or vehicles are and you have almost everything unlocked. Simulation has its good benefits like call of duty or superhero games like spiderman for a story line, but usually most games like granturismo takes to much time, stress and effort to finally get to the next mission or finally unlock a **** character, weapon or vehicle thats somewhat exceptional from the last thing you've unlocked. In the end, I guess it was worth the achievement of finally beating the game. I loved beating a hard ps1, n64 game as a kid, but now I prefer games like grand theft auto, just shoot **** up and cheat and do whatever I want.
simulation is too slow and not replicated well enough by technology