Yes, the problem is when trying to take the system out of the sim. Usually it doesn't survive contact with reality.
At least if we're talking simulators like Gazebo or Webots they all use game-tier physics engines (i.e. Bullet/PhysX) which are barely passable for that purpose. If you want to simulate at a higher rate you'll need to either sacrifice accuracy or need an absurd amount of resources to run it. Likely both for sufficient speed.
But yes overall I agree with your last point, it'll get the models into the ballpark but they'll need lots and lots of extra tuning on real life data to work at all. Unfortunately that data changes if you change the robot or its dynamics. So you're always starting from zero in that sense.