The sim_init function was called by runtest for each test when --tool
was set to sim. When we changed to --tool '' to collapse the testsuite
dir, the init function was no longer called on every test. However, it
was still being called explicitly by config/default.exp. It's not clear
why that explicit call ever existed since, in the past, it meant it was
redundant.
Lets drop the single sim_init call in config/default.exp and move it out
to all our tests. This replicates the runtest behavior so we can setup
variables on a per-test basis which allows us to recollapse the sim_path
logic back. We'll also leverage this in the future for toolchain setup.
Also add a few comments clarifying the overall runtime behavior.