It's a nice idea... but, to get something like this to work, someone would have to hack together an IDE interface card for the TG16 and actually get it to work... good luck.
IMHO, the future of the system will eventually lie in emulation. As a hobby, it may be fun to break out the old system once in a while and play on it or mod it...
But, from a practical standpoint, emulation is much easier and cheaper. There are tons of perks with Magic Engine:
*Practically no loading time
*No searching for CDs or HuCards as they can both be stored as images on a hard disk
*No wear and tear on CDs or HuCards
*Virtually unlimited save game memory, with an easy way to backup
*Support for save states (nice for people with jobs, etc.)
*Graphics filtering for high resolution displays
*No need to mess with RGB or S-video mods
*No worry about failing capacitors (unless you have a motherboard circa 2000
)
*Ability to use any gamepad (directinput device) that one desires
*Near 100% compatibility
*No additional system cluttering one's desk.