I completely disagree; kids learn a lot by using physical devices, that they won't learn from digital simulations. I think the best we can offer them is a mix of both.
Physical devices develop dexterity and attention to detail. For example, drawing a circle with a compass develops a number of physical abilities. Some kids love the challenge of making neat circles of different sizes, and they'll get something out of using a compass that they'll never get from a digital circle-making tool. And keep in mind, there are different kinds of compasses. There are the pointy-tipped kind that we all think of, and there are flat ruler-types that have a spinning pivot point. Someone who's used these kinds of devices can develop a very concrete understanding of what a radius and a diameter is, among other things. I believe some of the same benefits come from working with a physical spirograph.
Digital simulations allow people to try out many more variations in a short period of time than they could with a physical device. Digging into the code behind these simulations pushes people to understand the mathematical concepts that underlie these tools and patterns.
Our young people can have the best of both worlds; it's our job to help them enjoy the variety of tools that are available to them today.