Had you been paying attention, you'd know there was already a GBA emulator using this technique in development. Take a look at the GP2X Development subforum, and so far, it's working.
I pay plenty of attention. First of all, that technique is static recompilation, NOT virtualization, and it even falls back on interpretation when necessary. Go read the thread, I had a lot to say about it.
Second of all, until that emulator actually shows signs of doing SOMETHING what difference does it make what is it indevelopment? There was a "virtualizing" emulator in development for GP32 too. Did that ever run GBA games fullspeed? That's a rhetorical question, you don't have to actually answer that.
It's been done before; look at N64 emulation on the PSP. Use of MIPS code on a different-but-compatible MIPS processor. Same idea.
And you're wrong again. Daedalus using a dynamic recompiler, which is much different than virtualization. It's the exact same technique as my GBA emulator for PSP. And the CPU in PSP is NOT compatible with the CPU in N64. N64 has 64bit integer registers, double precision floats, and is big endian instead of little, amongst other things. And Daedalus is FAR slower than fullspeed right now, even though PSP's CPU is nearly 4x the clockspeed of N64's.
Now, XGP Kids has an even greater than 4x advantage in clock speed over GBA, and can probably get CPU emulation down in full speed. BUT there are other concerns, like the cache amount and overall RAM speed, because GBA can access its IWRAM and WRAM with 0 clock cycle delays (that's 128kb total).
And there are some 'ideas on paper' that are sure things. For example, it is a 'sure thing' that there will be enormous speed increases, probably close to full speed operation, once a real 3D accelerator is used instead of software 3D, which is never an elegant solution.
The things you're saying are definitely not sure things. And like usual you vastly overestimate 3D acceleration for 2D console emulators, where you CAN'T map the more expensive features (like alpha blending in GBA, for instance) to their hardware equivilents, no matter how much it might superficially look like the same thing to you they aren't. Not to mention that you can't naively handle a line based renderer with 3D acceleration.
Again, my GBA emulator at this point, 100% software rendered, can often outperform an SNES emulator that uses both of PSP's CPU cores AND hardware acceleration for the blitting.
Sometimes it's necessary to be a lot more than the pessimism you presently show. There'd be no enthusiasm for the XGP series at all if people were convinced it was a GP2X with a 266 MHz overclock out of box, which is what a lot of people make it sound like. It's more necessary to laud its potential, as was done when the GP2X came out. And most of the predictions of what it could do were correct.
What predictions? What amazing feats were predicted for GP2X that have come true? If full speed GBA or PS1 emulation were on that list then they haven't come true (I don't care how much either are being worked on, until they're done they're not done).. If the predictions were "it'll be able to emulate SNES fullspeed" then uh, congratulations ;P
I am not making absurd claims like that Dreamcast or PS2 emulation or other such craziness is likely.
Well, no. Your claims are certainly far more realistic than that. And this can possibly be done, but you shouldn't state things like GBA emulation on XGP Kids with certainty. Of course we both don't know if anyone will even want to work on an inherently crippled emulator in the first place, so it's probably moot.
I mainly made my post to demonstrate that virtualization doesn't work as an emulation technique most of the time, for console emulators. You must use recompilation. And I haven't heard of a purely static recompiler ever working, save for ones hand tuned for specific games. For GBA I'm pretty sure it will never work for a majority of games because of several reasons I outlined in the development thread for it. Dynamic recompilation is usually the best you will get (but dynamic compilation can be very deeply compiling).