All the modes hav etheir pro and cons.....
For instance it is totally impossible to pull any of the classic dogfight moves in simulator mode.
Try pulling a "Retournment", "Immelmann Turn", "Slip-Turn", etc. without your aircraft freaking out.
Your doing something wrong, these moves are fairly easy on sim mode!! change your setting perhaps?
Looking around for targets is a pain due to the simple fact that players are restricted to tunnel vison because we're limited to TV screens.
Having to push the right stick down to gaze around (disabling use of the rudder and throttle) screws up any hope of pulling off some clever acrobatic maneuver whilst keeping an eye on another aircraft is impossible. As stated above - use a joystick, makes this SO MUCH easier 
Another problem with simulator mode is that any hit on a control surface makes aircraft freak out, and as we all tend to end up right next to the deck in dogfights, we all tend to prang before we manage to regain control. The downside of this is that nobody is credited for the kill and some folk acuse other of crashing on purpose to deny a kill.
This is the same on any difficulty, so not a pro/con of any, but a con of all, the patch will fix it
The lack of a target following ability (only if the target is in view from the cockpit) is what puts most folks of simulator mode, Flying iwith tunnel vison is a pain. The damage model and flying is better though.
hence the reason its sim!! you do all the hard work yourself without great big arrows telling you where to go!
In arcade everything is fly by wire but all the classic dogfight acrobatics can be performed.
The combat s at a faster pace and players can focus on marksmanship, tactics and dogfighting skills. On the down side all aircraft are harder to shoot down than in realistic and simulator mode unless a hit on the pilot is achieved, which is kind of difficult on aircraft with rear armour on the pilot's seat.
The moves can be pulled of in any difficulty!! again, your doing something wronf if you cant do them!! and the action is MUCH FASTER PACED on sim mode because its more intense, your on the edge of your seat constantly
to be honest i find damage in realisic and sim the same!! you get hit, you crash!! simple.
The same problems of players loosing control of aircraft and pranging when hit still exists though and this wouldn't be a problem if everybody flew at the historical altitudes that dogfights were fought at.
then were not flying the way we want!!
To sum up, arcade mode is there for those who like to try out all those dofight maneuvers from history channel historical airbattles and from books, realistic is there for those who want a more realistic damage model and simulator is there for those who want air combat to be a totally masochistical experience, only be able to fly in shaky circles (because anything else will freak the aircraft out) and enjoy crashing a lot, etc.
your kidding right?? arcade is crap, period! the moves can be done on all settings.
Actually shooting down another aircraft is quite an achievement in simulator though usually through luck than skill. luck?? bollocks its luck!! its SKILL!! because you track a target, you chase him and you kill him, all with full real settings, and limited ammo!! how you establish its luck more than anything is beyond me!! you belittle everyone who plays sim with this comment mate, its a bit harsh
Simulator mode is still fun though, but not for serious dogfighting in.
HUH? arcade is crap, relistic could be called "fun" where as sim is for the serious dogfighting!! its where the skill is at and the tension.