In Denmark, you learn basic control of the car in a closed circuit, there you learn how to work gears, clutch, brakes, blinkers, steering, and then you practice by driving some patterns and have brake-tests, including on a slippery track (artificial ice). I feel this gives you the best from both worlds.. It's a very safe environment, and the first time, you'll have the driving instructor in the car with you, and he has a pair of pedals too, so he can break and kill the engine before anything bad happens. One of the things simulators suck at, are g-forces, like, what does it FEEL being in the drivers seat, hands on steering wheel when taking a turn.. And I also agree with nickjj, that it is probably best to do it in an environment with consequences, as not to build up unwarranted over-confidence.
Also, I find it disturbing that it is legal to learn how to drive with automatic transmission.. If you're not able to learn how to drive a car with gears, that is, you can't muster the hand-eye coordination and basic motorskill to get a feel for this simple operation, I'd expect you to be equally clumsy with steering, blinkers and brakes and that makes you're unfit to commandeer any motorized hunk of steel down any road in my book.