The iOS Simulator consists of (some of) the userspace components of iOS compiled to run on macOS. This would be a full iPhone image running as-is via virtualization.
That really matters, sometimes.
But not the vast majority of the time.
(source: been coding iOS since pre-SDK iPhone OS 1.0)
The difference doesn’t matter until it does, and then it’s infuriating to work out what’s going on.
I love this quote, reminds me how annoying it can be when something isn’t reproducible locally… only in production…
Edit: ah now I see, in the main readme under heading Firmware Variants. https://github.com/Lakr233/vphone-cli#firmware-variants
As others pointed out it's also useful for e.g. click/spam farms which need a "real" iPhone.