The definitions in part 61 define simulator time as counting toward total aeronautical experience. The 'flying time' definition only refers to aircraft, not simulators. I've adjusted my logbook accordingly and my total aeronautical experience is now obviously greater than flying hours due to a bunch of sim flying. I'm not as smart as LeadSled but the definitions seem pretty clear cut to me.
BTW, I'm talking about a pilot operating the controls in a sim, not simulator instructor hours.