Hi Michael_x, yes the Simulator works by reading and interpreting each line. This may sound easy but it requires that the program remember which loop it is in, the results of previous if statements when else statements are found and many other intricacies.
We have just released v0.96A which now has the Lilypad and Nano, and we will add the USB-based Leonardo next. Languages have also been added for the menu ( we were a few days earlier than Arduino v1.01 which now has multi-language support). We already have a long buglist for v0.96A which is part of the reason why the price is $8 and not $18. Also, we have recently added a Pro version license renewal at 50% off to ensure early adopters can keep their license current. The main problem we have now is a flaky Paypal interface -we have plans to upgrade to a more professional software registration agency soon.