PIC12 TRIS Register not setting, No GP0 GP2 output
The problem of TRIS not updating appears to be a bug in MPLAB X's PIC508 simulator core. I complied your code with MPLAB X and it failed in the simulator. I then loaded the hex file into MPLAB 8.92 and it simulated perfectly.   

I recommend using MPLAB 8.92 for low-end chips until (if ever) they get the bugs out of MPLAB X, but if you want to continue using MPLAB X then switch the processor to PIC12F508 (which doesn't have this problem).