One big problem:

Emulation compatibility.

Considering the PS3 with all its power can't even fully emulate PS2 hardware (DC and Saturn are still to this day considered hard to emulate) without specific hardware, there's little chance of it happening for Saturn/DC.

The architecture of the dreamcast is far harder to emulate than that of the original xbox which uses an architecture similar to pcs. When the ps3 had software emulation for the ps2 many games weren't compatible or ran poorly. So I would say its possible, but would sega and whichever company want to put a lot of resources in making the emulation needed for games to run smoothly?

It's a great idea! Don't get me wrong.. I would love to unhook my dreamcast from my TV!
But I think for now it's too difficult to have a good emulation.. If the PS3 has an hard time to get bc to the ps2 and the xbox360 to xbox.. imagine the problems with the emulation of a dreamcast..

I heard a rumor of hopefuls wanting a Dreamcast 2 (SEGA 1st Party Revival). There basis for this is Nintendo crushing the opposition so far that the market could be viable to re-enter. Personally as much as I would love SEGA to come back to making superior hardware I think the company may be way to content with their new 3rd party standing to consider it. However if they did Dreamcast2 with DL games and content,, Super Sweet!

Yep. I'm pretty sure that none of the current consoles can emulate Dreamcast games without the proper hardware.

Thankfully the PC Dreamcast emulators work great. :p

 I wish this was true.  I have always been a fan of SEGA.  I still have my old SEGA systems and the DC was IMO the most underrated system of all time.  They were ahead of their time with that system.  First to bring online gaming graphics were much better than anyone seemed to notice, remember seeing soul calibur on DC for the 1st time?  People just had a bad taste in their mouth when it came to SEGA.  SEGA's downfall is the management problems that started with the Saturn.

Soul Caliber 1 is coming to XBL Marketplace so i think that is the only way we are going to be able to play these games.

No emulation software or anything.

Xbox and ps3 yes to both. Wii no to both as no hard drive.

And I like the Soul Calibur and Ikaruga approach on xbox live. I'd never buy these games if they were just emulation like Wii's classics library. I need online play, leaderbaords, upscaled grapahics etc...

Otherwise I'd jsut play them on my Saturn on Dreamcast.

Ikaruga is also on XBLA. It was originally a DC game (then the GC port).

^^^I was just about to say that. I don't think that too mant disc based games are on the way, though. There are still too many (myself included) 360 owners who only have a 20 gig HDD. A couple of good Dreamcast games would put me out of buisness.