The question of emulating a Saturn on the Pandora (or other Pandora-class device) is not really one of possibility - an 900mhz (OC'd) machine with 256MB of ram could very likely do 100% perfect emulation of a 60mhz (combined) machine with 1MB of RAM -
given infinite time and resources.
And therein lies the rub - it's not that the Pandora is physically incapable of doing great Saturn emulation, it's just that due to the obtuse and difficult architecture of the Saturn, poor documentation, lack of time and other resources, it's VERY unlikely to happen. But it could - if a whole bunch of really talented coders (or even just one, I suppose) got together and spent a ton of time figuring out how to make it happen, there very well could be a 100% Saturn emulator. Unlike, say, the PS2, which despite infinite resources could probably never be fully emulated on the Pandora because the Pandora just plain isn't powerful enough to emulate a 300mhz system. How does that rule go? The emulating system need to be approximately 8 times as fast as the emulated one?
So the real answer to the question is probably more along the lines of "yes, it is possible, but if you want it to happen you'll have to do it yourself, because nobody else wants to open that can of worms".
The other big factor is demand. The PSX had a
vast library of thousands of games, many of them modern masterpieces, that people (including the people who write emulators) are frothing at the mouth to play on the Pandora (or other systems, for that matter). PC PSX emulation was optimized to a tee years ago (I remember playing good quality PSX emulators on a 450mhz PII PC w/128 megs of RAM, when the PSX was still "current" - Virtual Game Station, anyone?), but modern Saturn emulators are still struggling on modern PCs, mostly due to inefficient emulation rather than hardware limitations. By and large, portable emulators often piggyback off the work of PC emulators via either porting them or taking core system emulation and building what is essentially a wrapper around them. Blame it on the fact that there just isn't enough demand for Panzer Dragoon Saga and Burning Rangers to coerce people into spending months (years, even) of their free time making a Saturn emu.
The most likely scenario for Saturn emulation will be in the future if/when there is a high speed, efficient (without being architecture-specific ASM)
open source Saturn emulator for the PC. At that point, you're much more likely to see a Pandora Saturn emulator happen.
So what we really need is for people to start paying Exophase to make an emulator. I've got 10 USD. That should buy us at least 3-4 lines of code...