Why does the iPhone simulator rearrange the controls and change my layout?

The left image is the layout I am using to learn iOS programming. But when I run it in the simulator, the slider, stepper, and the button control move up into the image viewer control. I did not find any fields in the attributes window that would cause this runtime behavior. I even used the pin menu option on the image viewer control.

What am I doing wrong? Why does the layout manager behave this way? Also, will deleting all the constraints in the left panel destroy my layout?

Thanks