Saturn emulation's come a long way, and a Wii spec machine could probably handle the majority of games on it. Licensed official Saturn emulators were used for Gametap, and even some commercial PSP releases (Princess Crown, Devil Summoner). The real problem here is filesize, though some Saturn games have pretty small footprints and could be doable (VF1 is only 30MB iirc for example). Some 2D games could probably take the TGCD route and use modern audio/FMV compression to help reduce that, but most of the 3D games have too much texture or animation data to really make that viable.
Personally, I think Saturn (along with Dreamcast and Gamecube) would be best saved for Wii 2's VC. I would like to see Sega CD and 32X for the current VC though, no real reason we shouldn't have those games. We should also get way, way more arcade games, from Sega and others (Namco, Capcom, Konami, IREM, Nintendo, Taito, etc, etc).
