Device-Release and Device-Debug will build arm binaries while Simulator-Debug will build x86 binaries. Essentially, the processor between real device and simulators are completely different and you need to tell the cross compiler which architecture you are targeting. That's why Device-Release/Device-Debug will never run on the simulator and why Simulator-Debug will never run on a real device.
There might be a way to package both architectures in one bar, but why would you want to? The simulator doesn't require signed bars and is only for development.