The simulator idea has quite a bit of merit but would be too difficult/expensive to implement anytime soon. However, perhaps in the future, when you renew your driver's license, you would be given not a 'test' but instead some training.
Like a flight simulator, the test would present you with several driving challenges, including one where you are driven to distraction, perhaps by a ringing cell phone you are asked to answer or a dash light and a sputtering engine that occurs just as a challenging driving situation occurs.
Rather than being intended to filter people out, it would instead inform and educate people about hazards. Even if you epic fail and do the exact wrong thing, the instructor would discuss with you the things you could have done to improve your performance.
Pipe dream, of course. Governments can't be trusted to provide positive reinforcement and actual driving education. Instead, it would evolve into a skills based test and punishment system. The lawsuits claiming that it was discriminatory due to the choice of the situations would keep lawyers in business for decades.