If I wanted to be playing something where events just constantly fell into my lap, I could go and play just about any other RPG ever made, or mod the game out where I was some kind of voodoo dragon god with max skills and reputation, wandering about the countryside healing things with my right hand and making sexy time with my left.
Things will fall into your lap though. If it didn't it would be a horrible game that doesn't recognise your character.
Imagine being the greatest Adventurer ever and STILL needing to go hunt people down just to know what to do next. HECK NO! Your the greatest adventurer ever, people come find you!
Heck Imagine your an ordinary person and NOTHING happened for your entire life and you die of age. Things will happen because things are bound to happen.
That is how Reality works without even getting into Fantasy.
In Fantasy however things work quite a bit differently and one of the BIGGEST Fudging Toady ever mention was the Story Generator for Adventurers.
You have a world where everyone has great potential and who are trying to manipulate the world around them to their whims.
Fudging needs to be more subtle but it needs to happen anyhow as some things that are part of an Adventurer's lifestyle is difficult to include in generation. Then you also need for the Generator to always include things that are interesting. THEN you finally need someone for the player to do after the thread has been realised (Yay Lategame Arc)
Finally certain things will happen by virtue of it being a first person perspective. That Mugging? Well sure it could have happened anywhere else and indeed it does. However you were just unlucky that day. It would be adjusted by the crime rate in the city/town/hamlet/thorp/village/hole. It isn't so much Fudging as the game could NEVER possibly control every single actor in the world all the time, so it instead uses statistics to cause events to happen as well as what the actors are coupled with.
So you kill the mugger, guess what his Wife is the head of the Fighter's Guild. Now they will try to kill you.
That is the case where the system fudges things so that events can happen. Since in reality the chances of seeing a mugging is high, but the chances of seeing a mugging naturally for gameplay is much lower due to limitations in the system. Basically it is Fudging to make the game more realistic!
Note: I cannot organise my thoughts... I build 100s of scenarios while getting this down.
Thus Fudging doesn't JUST ruin Simulation. In fact Fudging can be an excellent way to make it even more of a simulation when reality and software limitations contradict eachother.