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