Yes. Assuming it is a proper simulator akin to the Dryfire system, it's an invaluable aid to training.
I'm lucky enough to have a Dryfire system at home and have found it has brought my shooting on no end. The systems are smart enough to know the lead required for the target and precisely where you shot it so it can tell you your pointing errors down to the nearest centimetre. You can fit the device to your own gun so it can be used not only with a familiar gun but can be used as an aid to gun fitting. I find the ability to design your own targets is useful so you can simulate those targets you struggled with last time out in the real world.
Whilst there is no doubting that it is not as exciting as the real thing, it is not supposed to be an entertainment system, it is teaching/training system.
I have used my system for about a year now and have found that my scores on the Dryfire correlate very well with my practice scores shot on the range.
I would say that the setup costs, whilst high enough to limit the amount of personal ownership, would not be at all prohibitive for a commercial venture and of course it is much cheaper for the user as you don't have to pay for clays or cartridges. It's also nice when it's freezing cold or p***ing down!
I should add that this is not an advert for Dryfire, I just happen to be a satisfied customer. There is a similar system that comes from somewhere in scandinavia that is supposed to be very good too.