The sim is good as far as getting your app going but if you do anything out side of a basic app, anything graphic or animation intensive. You have to use the device. The sim uses the same processor that it is run on which is way more powerful than an iPhone.
Yeah, I know registering is a pain but once you log in you'll see that the app integrates with your accounts on Flickr, Youtube and DocStoc etc. That info is never passed down to the bookmarklet and the jsonp exchange is handle securely through our server. So registering is a necessity.
Thanks for the feedback. I'll look into creating a version that can be installed without registration.