1 - Depends what you mean by simulation - maintaining ems who think they're in meat bodies? That's dishonest at least, but I could see cases for certain special cases being a net good. Creating a digital pocket universe? That's inefficient, but that inefficiency could end up being irrelevant. Any way you come at it, the same usual ethics regarding creating people apply, and those generally boil down to 'it's a big responsibility' (cf. pregnancy)

2 - I don't, but if you think so, then obviously yes. I mean, unless you think reality contains even more copies of us than the simulation. That seems a bit of a stretch.