> barring some stuff here and there, we've gone nearly as
> far as we can realistically get at least for the time
Although it may not be very obvious, there is still a LOT that emulation has yet to do. The obvious answer is that systems like the Xbox, Gamecube, and PS2 still aren't well emulated... but there are also less common systems like the CD32 and CD-i that really haven't gotten the same attention as the NES has. If I'm not mistaken, UAE still hasn't really done CD32 quite right.
Many would also argue that the emulation we have is still insufficient. I've heard many complaints that SNES emulation still has a long way to go, especially when it comes to sound... and are there any NES emulators that actually emulate ALL of the mappers out there? Do they all have perfect colors? Dosbox is another emulator that still needs a lot of work. And although it's not really an emulator per-se, I look forward to FreeSCI handling some of the later Sierra games.
There has also been a gradual migration of emulators to console systems like the Dreamcast, GP32, Xbox, and more recently even the PS2, Gamecube, and PSP. And if you haven't checked out the GP2X yet, then I suggest you do some web searches, because it's potential for emulation is very exciting. I doubt it will be very long before someone cracks the Xbox 360 and we start seeing emulators ported to it.
I would say that for the most part, there is a sufficient amount of stuff emulated to a sufficient degree that people (including myself) have become content with what's available, but believe me, even if a lot of the work is behind the scenes and mostly invisible to the end-user, there is still much more to come.