In theory the PS3 is more than powerful enough to emulate a Wii and the PS2. However to recreate an emulator on the PS3 is a difficult task (if want to go for full potential). For example emulators on the PC would require a lot of redesign to make good use of the Cell's SPUs.
If the emulator can only run on the 3.2 Ghz PPU, you're not using the 7 other 3.2 PS3 Ghz processors which are just as powerful.







