It is definitely impossible, because applications must be compiled specifically for running on a simulator and iPhone, and such assemblies are incompatible with each other because they are designed to work on different processors.
Edit to add: you can copy data / content (and you can, for Apple applications, such as the address book provided by Apple for the simulator), but if you do not have a version of the application compiled for the simulator, it can work, the contents are not explicitly used.
source share