From discussion here and elsewhere, simulationism seems to label game play characterised by i) giving the imagined world precedence and ii) addressing it as if it were independently real.
Your second thing is a characteristic of all RPGing. It is what Edwards calls
exploration. Your first thing is an overly narrow account of "simulationism": Pendragon is a RPG intended for simulationist play, and it doesn't lose that character if the participants in a game prioritise
character and/or
situation over
setting.
Edwards
characterises "simulationist" RPGing in terms of the
priority that it gives to exploration:
the thing to do is to get as clear an understanding of "Exploration" as possible. It's our jargon term for imagining, "dreaming" if you will, about made-up characters in made-up situations. It's central to all role-playing, but in Simulationist play, it's the top priority. . . unlike Narrativist and Gamist priorities which are defined by an interpersonal out-of-game agenda, Simulationist play prioritizes the in-game functions and imagined events. . . .
The key issues are shared love of the source material and sincerity. Simulationism is sort of like Virtual Reality, but with the emphasis on the "V," because it clearly covers so many subjects. Perhaps it could be called V-Whatever rather than V-Reality. If the Whatever is a fine, cool thing, then it's fun to see fellow players imagine what you are imagining, and vice versa. (By "you" in that sentence, I am referring to anyone at the table, GM or player.) To the dedicated practitioner, such play is sincere to a degree that's lacking in heavy-metagame play . . .
Sincere shared creativity: all role-playing has to have it. For some, it's the whole point.
"Simulationist" play is
described by Eero Tuovinen, in a blog that you're referenced in earlier posts upthread, in this way:
Simulationist play attempts to experience a subject matter in a way that results in elevated appreciation and understanding. The Shared Imagined Space is utilized for intensely detailed perspectives that sometimes surpass the means of traditional, non-interactive mediums.
Edwards and Tuovinen don't offer identical characterisations:
sincerity is not the same thing as
elevated appreciation and understanding in virtue of intensely detailed perspectives. What they have in common is that they
exclude certain sorts of ways of establishing the shared fiction:
"Simulationist" RPGing, as described by these commentators, precludes
altering the fiction on the basis of, or as a direct response to,
our appreciation or engagement with it. This is not easy to state, and not easy to achieve. In a RPG, the fiction has to change. Necessarily, those changes occur because the participants engage with it - they describe fictional events, fictional causes, fictional effects. "Simulationism" is about trying to hold the fiction
constant on its own terms while the RPGing happens.
Often (not always - consider some approaches to Tuovinen's "dollhouse play" or "substantial exploration") it is the job of the GM to hold the fiction "constant on its own terms", meaning that the GM is
not really getting to engage in the sincerity and the elevated appreciation. They are labouring away, fully conscious of their authorial role, so that the
players can enjoy the pleasure of simulationist play. I think it's actually rather common to see GMing described in this way, often using metaphors of "behind the screen" or "behind the curtain".