Emulation? Madness!
A (very) noisy Xbox with the worst controllers in existance? I think not!
I want to insert those hu-cards or CDs in that pretty Duo, and I want to hold that (somewhat crappy) PC Engine controller when I'm playing my PC Engine games. I would NEVER play it on another console or a computer, it isn't even an option!
Consider this: the more you use your equipment the sooner they will die. I prefer to preserve my stuff.
Going to controllers - there are many plusses to emulation on PC and the XBox, one of them is the controller. With adapters and massive third party support, you can almost get any controller in any shape for your PC or XBox. Personally, I find the corners of a NES controller a bit jagged on my massive hands, and the PC Engine d-pad has a lot to be desired thanks to it's concave-ness. After about 20 minutes I'm left with a raw left thumb.
I'm also able to take my experience several steps further thanks to the many benefits emulation offers including: loading CD games off the hard drive (no loading times), high-res graphics thanks to a variety of different filters, savegames where you want, customizable buttom mappings, you name it. Some emulators even have the ability to rewind a game to correct a mistake or two.
Personally, I don't care about buttom mappings, savegames, or rewind functions, but they are there and a marked value-add over the original offerings.
Emulation is clearly superior in terms of what options you are given, but it all comes down to personal preference in the end. Firing up Bonk on the XBox just isn't quite the same as firing it up on the original hardware.
OD