Issue:
When switching between Appium server (1.6.4) and the GUI (1.6.5), the app launch will hang (a black screen appears).
After an hour or so of researching this issue I figured out a solution.
Solution:
Resetting the Simulator (Reset Content and Settings) will resolve the hang that occurs during app launch (when switching between the Server and GUI).
Just wanted to post this if anyone else runs into a similar issue when using the GUI for the inspector tool and server for running the scripts.