It is somewhat embarassing to see how people are grasping at straws.
"MS looking into making an X360 emulator".
Do you remember the very early leak of a 20-page memorandum about X1 hardware? It had a hardware circuit for X360 backward compatibility. So, yes of course MS was and is looking into backward compatibility. We have the X1 now and it does not contain the circuitry. Can they make it in software?
As a rough estimate, it takes about four times cpu power to emulate another processor. The X360 has a 3GHz triple core power pc processor. So we need very roughly 30GHz of processing power to emulate it. Good luck with six 1.7GHz low power Jaguar cores. Sure we might add gpgpu power to an emulator. Maybe the whole, very complex thing would actually run some software at some 5-20fps. How many man-years of work would have to set aside for such an almost usable emulator? How many people would actually buy such an emulator? These are the problems MS is looking into when the question "How about an X360 emulator?" pops up. What should the guy on stage answer if he wants to avoid the simple, but truthful "Not in a million years" reply?

I own two xbox 360s and an Xbox One but even if they offered some sort of $100 add on for the Xbox One that allowed for 360 ganes to run on the new console, I might have to jump on it.,

That would be nice. I would like to have that for the few games I kept when I traded my x360 in.

I don't think this is coming anytime soon, if at all. It's too bad. One of the better things about X360 was the ability to play Xbox originals.

Wine isn't an emulator. Even Wine means "Wine is not an emulator". An emulator must reproduce the software or hardware environment precisely. Virtualization isn't emulation too, because the hardware isn't simulated (a lot of physical hardware is passed through directly and shared. That's why virtualization today can reach sometimes 80% or more of the performance of a native OS). 

Wine is translating because what it does is translate one language to another. He gets the instructions for a Windows software and converts in real time to calls for Linux equivalent operations, like translating the calls to draw a button in Windows to equivalent calls to X.Org on Linux. It isn't emulating a Windows environment, it's simply translating Assembly code in real time.

Emulation demands that you simulate other hardwares using software. Emulation never can come any close to the original in performance, demanding a much more powerful hardware. Hardware implementation is much faster than software and they can't change it. Anything that gives an almost 1:1 performance, like virtualization, isn't emulation.

People are with the wrong focus. CPU isn't the big problem. X360 CPU isn't much different of a Wii CPU in steroids with multiple cores. Problem is GPU. Wii uses a simple fixed function GPU that has all the functions implemented on hardware in a pretty predictable way. That's why lightning on the Wii is bland, because it has only one algorithm to do it and it is hardcoded. 360 GPU is programmable. Lightning is done with shaders so it can apply different lightning algorithms to any material. It's complex. This is what makes emulating any console after PS360 another level of challenge.

I think some might have read somewhere about CPU issues in emulation and taken it the wrong way. The problem doesn't falls squarely on the X360 CPU as much as on the XOne's. A huge part of both the CPU and GPU instructions of the X360 would fall as CPU work if it were to be emulated. The XOne and the PS4 don't have the juice to do it.

It would be amazing if it did, but then, a lot of things would be amazing and simply won't happen, so yeah.

Yes, they don't have enough power to emulate it. Even high-end PCs wouldn't have it. A translator could run, but it looks like it's pretty complicated (since most consoles to date simply were shipped with entire hardware components from its predecessor to allow them to run games). Despite that, Hd re-releases are being a great cash cow. GoW HD versions sold around 3M combined, Ico and SoC sold some good few hundred thousands units. With low production costs to port them, it was pure money.

Go to Youtube and try looking for video of people playing games you tested.

Here's a video of someone that successfully booted Okami.

https://www.youtube.com/watch?v=6QiDTci9uMA

WinE originally meant Windows Emulator.

What you're calling translation isn't translation.  Translation is taking C++ and converting it into C# or VB#.  Windows calls aren't a language.  Nor are Linux calls. 

Every computer language is meaningless to a computer other than binary.  From Assembly on up to Javascript is simply a computer coding language intended to make programming easier for programmers.  If I open a file in Basic, C++, or Perl, I'm issuing essentially the same commands in Binary.  I'm just using an easier language to do so.   Where as it may take 3,000 lines of code to open a file in binary, it may only take four in VB or two in C.

So when an application makes a call to the OS to open a file, such as Word may do in Windows, the programmer makes a reference to a C Lib to open the file and pass it onto the application, where then the application does more with it.  That call to the OS that the application makes is the same in Windows as it is on Linux.  Now to save a file, the OS may do something different.  Maybe when the file is saved the application gives the user the ability to associate a unique icon with the file (as Word does), this may require a call to another file.  In order for WinE to emulate that or handle that call gracefully, they would need to emulate that call OR gracefully error out.       

While WinE doesn't have access to original source code to understand every hook and relied upon reverse engineering to identify the calls to the OS that applications were making, it is still an emulator.  What you're calling translation is actually what happens when you emulate a system.  You take a call that an application makes, then you emulate that call on a facimile of it.  Most of the time people are emulating (virtualizing) the hardware in software, WinE is simply emulating a portion of an OS functionality.     

Where WinE differs from a true emulator is that it doesn't emulate the entirety of Windows or even the hardware.    It is an application layer that emulates Windows calls.  Much in the same way that Windows NT itself could run POSIX and OS/2 applications, or OS/2 could run Windows 3.1 applications.  They're application layers that emulate a different OS.  

I would encourage you to educate yourself.  Emulation is a subset of virtualization.  They are almost synonmous.