I agree,however if it was done,for speculations sake a custom player would have to be built that was far more advance then the typical arcade hardware,and even the Laseractive hardware inorder to do it right. This game would be mean on the seek times of a laserdisc player laser due to back and forth required access.
It would have to have very fast seek times with a much more advance laser and graphics ability similar to having the Laseractive use a in game hardware module like the MD or PCE one but at least on larger scale like PCFX.
The best way would have to be having the game video read off of faster data methods,dvd,or harddrive if cleaner video is a must and have it done on modern hardware.