A Simulator is a Simulator-and flies like a Simulator...
An airplane is an airplane-and flies like an airplane...
Using a Simulator as PART of pilot training, it is there to be used for procedural training-basic maneuvers, emergencies etc...
To do that-you only need an instructor who knows:
-how to TEACH (!)
-how to read the books/the checklist
-how to fly the SIMULATOR
When it comes to real flying, it is important that the instructor KNOWS the difference between (what have been taught in) the simulator-and the REAL behaviour of the aircraft.
So my opinion:
No, a SFI does not need to be experienced on type-as long as he is experienced in the procedures AND the simulator.
BUT:
The flight instructor picked to fly with a student AFTER the simulator phase needs to be trained in both-the simulator (or the differences from) and the "real aircraft"