Meanwhile development of a true iDevice emulator is underway. Unlike XCode's iDevice simulator (it compiles the dev app for the host architecture [x86/x86-64]), this emulator is based off of ARM QEMU with lots of hard work going into emulating the iPhone's hardware. It directly emulates stock iOSes/apps.
Project page: http://www.iemu.org
Github: https://github.com/cmwdotme/QEMU-s5l89xx-port
Screenshots: http://www.cmw.me/lcdworking.png http://www.cmw.me/ichargetoo.png http://www.iemu.org/oibiemu.png
Author's Twitter: http://twitter.com/cmwdotme