I've been on NationStates for years. I won't say what my nation's name is because I like to keep my Internet compartmentalized but I will say that there is bacon involved.
It isn't supposed to be a simulation; it's a game. To me, role-playing in the Forum is the best part.
In the sidebar, click on "Forum" and check out "Factbooks and National Information", "NationStates", "International Incidents", etc. (Avoid "General Discussion" like the plague.)