It's essentially emulation, so by rights it should aim to run under the same specification as the xbox 360, with the difference being that the hardware has the grunt to smooth out areas where xbox 360 hardware struggled.
The executable for the games most likely has to be modified in order to correctly run on the hardware though, which would explain why even with disk, you need to download the game and not just run it locally from the disk.
Slightly off topic but, if you're hoping to see something similar on the PS4, don't hold your breath, the differences in hardware between the 360 and xbox one, codebase wise are substantially smaller than that of the ps3 to ps4, you can blame the cellbbe for that one.
Haven't been able to test this feature for myself yet since my XBO's are back home in japan, will be once i get back though
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