That's not a NES emulator nor a browser for 360, that's software running on your Windows PC and exporting its graphic to your TV via the 360.
This is done via RDP (the protocol used by Windows for remote desktops), for which incidentally I have clients on my PS3's Linux. On which I can install SNES and NES emulators directly, btw.
The whole point was using your console when you quickly need to check your ebay auction or a forum page or a youtube video, if I had to get up and go to fire up my PC upstairs, I might as well use it directly for that quick browsing need. If we bring home servers into this, everything changes, including the PS3 not having Netflix. I'd say let's stick to the original point, that is: why there's no browser on the 360.
Plus, I wonder: can you download and upload files from/to your 360 by using the remote browser?
I think you're missing the point... there is a browser FOR the 360... regardless of the fact it runs off of your PC