Re: 360 Emulator: A theory
Well that is a great first post.
I know the idea has been attempted many times. This ideas was the first to be tried with xbox emulation. I'm no longer sure of the emulators that tried it. What you speak of is called an OS wrapper. Things like virtual pc, and VM tools do this. Also the concept of HLE is the same manner of emulating. With n64 and ultraHLE being the first to prove the concept. HLE is not a OS translator but HLE attempts to simulate the response of the system rather than accurately recreating its internal design. I'm sure m$ predicted this and built a mechanism to prevent it. I still agree its the way to do it but I dont have the time to try it. If you want to actually query about it dry IRC channels. They would love to flame you for asking ;) but at least you would get an answer form the source.
hLE http://en.wikipedia.org/wiki/High-level_emulation
OS WRAPPER of sorts https://en.wikipedia.org/wiki/Wine_%28software%29