I'm a scientist. Believe it or not, I believe in substantially more than prediction and I think its rather trivial to come up with examples where mere prediction is insufficient to meet a normal person's notion of an account of a thing (eg, pre-copernican planetary motion). I'm not saying you are wrong, per se, just that the idea that "it was prediction all along" is a very specific idea of what human beings are interested in and what we are up to.
> that we glean insights into nature of the simulated phenomena
That is right - most people believe that there is a simulated phenomenon "out there" that we learn about. I think there are strong reasons to believe this having to do with how models are related to predictions. The wrong ontology can make prediction very hard and the right one can make prediction substantially easier. Arguably, we are in that situation right now with language models - we just threw a lot of parameters at the problem and now we are able to predict but we still don't really understand. This is perhaps inevitable in the case of language, but I don't think we should look at models with tons of degrees of freedom and the ability to predict things as a death knell for the very idea of deeper understanding.