ILR said:
'simulation' is the problem word. Simulation automatically means that there's an imperfection. When it comes to computer programming one of the first things I've learned is that any program can be perfect, all it takes is patient twiking.
Sure there can be 100% accurate emulation. Absolutely. There are some problems.
1. Cost (both time on monetary)
2. Emulation Speed
3. Quality
First, the cost is too great. You need to purchase hardware to reverse the Nintendo64's structure. You also need know howto or spend the time to learn how to trace the paths on the PCB and accurately figure out how all the chips work completely. Both time and money. Lastly, you need some testing applications to run on the hardware to check for emulation accuracy. This is basically the current state of NES emulation.
Secondly, the emulation speed would be unacceptable. You would be running a 93.75Mhz CPU at something like a 10 Ghz system with full speed if you decided to use complete accurate emulation. This would include cycle counting, the double processor syncing, I/O timing, and various other things which current nintendo64 emulators currently simulate as best as possible to make the majority of the games run as fast as possible and as well as possible.
Lastly, the quality of the emulation would be worse then you see in the currently running games. You can't have complete emulation and nice graphics like you do now. You could only have pixelated unusable slow crap which I have already seen in LLE.

And that isn't even 100% accurate emulation.
Your attitude reflects your experience. Stand back awhile and learn. You will understand how difficult it can be to write an emulator (an accurate one). I highly recommend trying a NES emulator for yourself if you disagree. Emulation isn't a computer program... it's an emulator. There IS a difference. Ask Sony about their difficulty in getting PSX games to work 100% compatible on the PSX2.