I have also run into this issue. The only solutions I have come up with are:
- Manually add several contacts, which can be frustrating
- Create a project that populates the address book with several contacts, which is easier if you need more contacts
- Now that the iOS Simulator supports iCloud, and you have backed up your contacts, you can sync it to your iCloud account, trigger an iCloud sync, and use your actual address book to test with.