A little lesson in arcade hardware theory and philosophy...
The reason that Naomi (in all its forms) uses a RAM cartridge for its GD-ROM games is to extend the life of the GD-ROM drive. A long time ago (within the last 5-10 years), some games used either a floppy drive (ex., Sega System24), CD-ROM (ex., Capcom CPSIII used a SCSI CD-ROM), or HDD (ex., Atari CoJag hardware on) to store the video portion of the game. The problem was that the data was constantly being streamed off the drive, plus the abuse the arcade cabinet took along with the heat and lack of consistent cleaning of the inside of the cabinet for dust and whatnot. This caused a fairly constant failure of those drives, which drove the cost of the arcade unit up. I'm not sure if it was Sega's solution or not, but since the Naomi hardware games that use the GD-ROM are streamed to the RAM cartridge, and then the drive goes into a standby state until it's turned off and back on (or the data is corrupted in memory). The game is played off the data in memory (even the sound/music is in RAM, so it doesn't follow Red Book standards).
Another issue is encryption. We are aware of what encryption is in the Xbox, but does that mean the Chihiro uses the same setup for encryption? What if there's an additional chip that further enhances any used encryption? There are several documented cases (
here is just a small list of known protection chips) where dumping is made difficult, at best, of data.
What is needed now is more information about the Chihiro. Specs for it are all fine and dandy, but that tells us...what? Specs are specs, but it doesn't tell us what it can really do, and how it does it.
BTW, depending on the age of the game, you could get arcade boards for as little as $40+s/h. You could always create your own arcade cabinet setup. Only the boards (and cartridges/discs/drives) are truely needed. The problem is, the latest arcade hardware I can find for sale is Naomi 2/Atomiswave (using non-eBay methods).