If your application is submerged (for example, a game or video application, as others have said), you may prefer to hide the status bar - this is what is for this parameter. Otherwise, this is not a good idea.
One thing that should be noted, however (at least as far as I know), is that if you hide the status bar, the simulator does not seem to allow you to click on an area that would otherwise be. If you want to host your own controls, this can be a problem. It works fine on the device (in my application, I should have a conditional code that displays the status bar if it is created for the sim).
philsquared
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