No, observation is not experimentation. Experimentation requires you to make a change and observe the effect. It is 'hands on'. (note: I'm playing Devil's advocate here, and just repeating criticisms I have personally received in the past).
When shown the results of a simulation, people will point and say "That's not science" because it doesn't contain any direct modification to the system under study.
This is exactly the reaction I got from some people at the Universities where I did my PhD (three separate, public accusations on three separate occasions in two different universities). Interestingly, these accusations always came from biochemists , who are used to having something in a test tube that you can poke at directly.
IMHO, observation is a valid form of study and can be done in a perfectly scientific manner, but there are scientists around who do not accept that.