I've been aware for some time that Push notifications work on the iOS simulator now -- I see them pop up while I'm working.
However, it would seem that SILENT push notifications do not work. I came to this conclusion only after several frustrating hours of debugging my app, thinking either the app was broken or the server wasn't sending the notification. Finally I tested it on a device and found that it actually works fine.
Why does such a limitation exist? If I can't depend on the simulator to handle ALL of the notifications, I'd rather it didn't work at all. Having it work part of the time on some notifications is really confusing.