I think the Xbox could emulate DC fairly easily if they had a professionally written emulator.
the DC ran off of Windows CE, it'd be about as complex as the Xbox 1 emulator. however it would probably be much easier considering the hardware in the DC wasn't as powerful.
I think they might consider it if the optical drive could read DC discs... IIRC it was similar to a CD but with the data more compressed, modern drives would have a good enough laser that they could theoretically read them with proper firmware.
I would be in heaven if I could pop DC discs into my 360 or Wii
