HiFranc,
I sim a lot and drive the real ones. I use the sim to do the stupid stuff, inverted flight in a J-3, loops in a 747, but the real thing I do it all properly.
In the early days, my head lived in the cockpit instead of checking out the scenery while flying, all I want is VFR so why pay for the view and not look?
What the sim was very useful for was checks. Run ups, pre-take off checks, after take off checks, FREDA etc. it helped me learn them quickly.
I, too, am scared of heights, put on top of a ladder and I'm sweating like a sweaty thing. You'll get over this quickly.
Yes there are big differences, but go for another flight, see if you enjoy it and then commit to doing it.
Good Luck.