Mobile Testing: Simulators or Actual device

Mobile is the next biggest thing is the software market and already more than 60% of the big business is drifting towards mobile. This makes the mobile testing of the utmost importance.

FOr doing mobile testing what do you think, which is a better way, using simulators or using device?
Let me ponder over few points:

Using Simulators -
Testing will be faster
A tester need not be a touch device geek
Easy to take screenshots and report defects
debug anything on actual base platform while doing testing for mobile

Using Device -
Real Time testing for networks
Real time testing for the features that can't be done on simulators
gesture, touch, tilt related testing

I have given just a few examples, now can you add some more to this, to help us decide that which one is a better solution for mobile testing?

-CB