My comments may echo some already made.
The PADI course also involves having the students analyze gases, in addition to the dive planning and simulations. To me, that - gas analysis - was probably the biggest benefit of the actual dives (which i had to do years ago when I took the nitrox course). Frankly, I enjoyed the dives when i did them, but they were a bit anti-climatic. What I learned to do was plan the dives for depth and conditions, AND analyze the gases that I was going to use, and all of that was done before ever going to the water.
So, in the current course configuration, the student comes away with a theory basis, completes knowledge reviews, completes an examination, plans dives, and analyze gases. Even if this may be seen by some as 'bare bones', it still provides what they need to know to dive enriched air with relative safety. So, I see no substantive downside to allowing the substitution of simulated dives for actual dives.
The Instructor can make a material difference in the course. I prepared a handout which I use in my course, to supplement the student manual (and even include quotes made on ScubaBoard by Peter Guy - Peter Rothschild - and DevonDiver - Andy Davis).
At one point in the past I had students analyze 5 'unknown' gases, including a 50% and a 100% deco mix, as well as a hypoxic trimix bottle (to see their reaction, and understanding of how a mixture could become hypoxic) . I changed that latter item when i moved to a shop that doesn't have the capability to pump trimix, however.
PADI no longer produces the 32% and 36% slates, but I do go over the use of the Equivalent Air Depth Table for Enriched Air, in combination with the RDP. Since most divers these days use computers, I emphasize the importance of a) reading the owner's manual for whatever computer they may have/use, AND b) setting their computer for the proper mix, that they determine by analysis. I am honestly not particular interested in whether they watch the video, so being able to document that is, for me at least, relatively unimportant.
Enriched Air diving is NOT - from my perspective - neurosurgery, rocket science, or rocket surgery. But, students MUST understand the risk, and signs and symptoms, of oxygen toxicity, they must understand their responsibility in using Enriched Air safely and effectively (through proper planning, and executing), and I believe that can be, and is, accomplished in the current 'dry' course format.
I have said in previous threads that I cannot understand the justification for shops to charge large fees for the course. But, that is also a shop, NOT a PADI decision (and is an example of why PADI requires that students sign a Non-Agency Disclosure Statement, I presume). We charge $79 US for a 4 hour 'dry class'. That is our choice. Some other shops in the area charge more. I do see at least one senior instructor in our shop do the class in an hour, and I wince. Nonetheless, I continue to do the class the way I think it best helps the student divers to learn to use enriched air effectively and safely.