Shouldn't the 920 simulator have 2 more buttons, and disabled touch screen?

When you setup the run configuration in Eclipse, are you choosing the Forerunner 920XT as your target device? You need the latest SDK, 0.1.1, to enable this option. You should see an image of the 920 in the simulator instead of the generic ConnectIQ square watch.

Yes, thank you. I am certain I had selected the option, because I was keen to see it. Anyways it is working now.