Have we gone too far in the simulation direction?
Not really, just too far in taking away real time training. IMHO there is a distinct difference between a simulation and live experience. The psychological influence simply can't be the same in a simulator. Deep down you know it's just a simulation. The pressure is only on session performance and eventual failure, although that pressure is big enough, i admit.
But pressure in a situation of shear disbelief ("f*ck, did this
really just happen???") and fear ("holy s#it, now my bum is
really under threat ....") is completely different and it this very pressure that can make a difference.
I am by no means advocating astronautical training with upsets and so on, but I am no longer sure if more automation, more techniques trained in the sim, even more sops (that mainly please managers and regulators) will help mitigating the reduced experience and hands on training. There must be a better balance than what appears lately.