For a bit of history, once upon a time Android did have one of sorts. You can still see sprinklings are references to it in AOSP but I think the simulator lunch target has been removed. It was from the early early days and allowed them run to run parts of it on the desktop. You can see some of the reasoning on why they preferred the QEMU solution here: https://groups.google.com/forum/#!msg/android-porting/fLObl9...
I guess I don't see the point of a simulator either. If the performance is that bad, why not just use hardware?