Emulating the CPU is nice, but the trouble has always been emulating the peripherals
Does your editor do this? I tried the example but didn't see e.g. LEDs blinking
You can add peripherals There’s a “+” button on the right side of the circuit editor where you can add components like LEDs
Yes,peripherals are fully emulated, not just the CPU. LEDs blink, buttons respond to clicks, Serial Monitor works, servos rotate, displays render (ILI9341 TFT), and we have 48 o more components from the wokwi-elements library. The Blink example should show the built-in LED toggling on pin 13. If it didn't blink for you, it might be a compilation issue
try the example Traffic Light : Simulate a traffic light with red, yellow, and green LEDs