I don't think that's what this machine is designed for.
On the other hand, Apple pushes Xcode & iPhone development quite heavily to students (and not say Python or JS), so it’s definitely something they care about.
Kids already are well aware of iPhone upgrades. Parents will get them this machine. They'll get going and soon enough be badgering their parents for an upgrade to a more competent machine. That is all by design while being an affordance for people who can only get in at the cheap end.
So IMO in 8GB most types of coding is possible actually.
But regarding Xcode+Iphone simulator, I am not sure if that's possible tho. It's possible to run android simulator on Linux 8 GB with waydroid while being pretty smooth. So theoretically could be possible but I am not familiar with building with Xcode/Iphone simulator.