As a matter of fact, I think that its simplicity is what makes KSP so fun to play. If it was real n-body orbital mechanics with real drag the game would quickly become much too complicated and tedious for casual play (and too slow).
http://en.wikipedia.org/wiki/Orbital_station-keeping
But anyway, I still hope that Principia mod (the n-body simulation addon mentioned elsewhere in this thread) will get released. This will really bring KSP into Dwarf Fortress level of enjoyment. Also, you'd get to make some really weird-ass stuff:
http://images.scholarpedia.org/w/images/f/f6/NbodyChoreoGamm...