Something in the simulator supports a mouse, so I wonder if it's down in the code somewhere, just not enabled.
I've seen videos where there is a faint circle representing where the cursor is and then it 'touches' the screen.
shrug I just wasn't sure if that was part of the ipad itself (like maybe accessibility) or all from the simulator.
That's coming from the simulator, IIRC. Hold down the alt key and it will show up.