I don't like the emulated games for two reasons:

1. I have them already on the original system they appeared on if I really like them

2. It's often a lackluster emulation without any added value

Well, MvC2 at least was remade in HD and I can play it with my SF4TE Stick...

And all the Genesis games are collected in a box anyways and now I always feel like they steal the slot from an original release waiting to come out.

Well, they are not going to release games of the quality of say Braid or Shadow complex every week are they.

Sonic and Knuckles release was a blessing for me, because i now have all 4 origional sonics on my 360 so i can go seamlessly from a session of say sonic straight to an online session of Left 4 Dead and then perhaps some Streets of Rage 2 to finish off.

Old and new paradise.

I can understand when people say that games like Duke Nukem 3D and Sonic & Knuckles are delaying new and origional games, but if a game is a bonafide classic then i would much rather have that than say Golf tee it up or Rocky and Bullwinkle.

Touché. There is no way to argument against Rocky and Bullwinkle! You win!

I just think that the primary audience for all those classics are people who already own them or used to own them - you won't get a 15 year old kid in 2009 to play Sonic or Streets of Rage with the same kind of appreciation that they inspired 1991.

So why not get those games on a different channel like the Wii does with Wii Ware and Virtual Console and put more focus on modern games with a classic vibe?

Or at least remake them with some style (like they TRIED to with Turtles in Time - I would have bought that if it was a bit more true to the original). 

Yeah, a classic and modern arcade section sounds good. (and yes, would be nice if you could for example play the origional streets of rage 2 or an updated version with better graphics and maybe some extra levels thrown in aswell)

Must be hard for Microsoft to keep everyone happy though, they have great new games like splosion man and shadow complex, but they also have many more classics on the way like Perfect dark and Doom II.

The biggest winners are all of us in a sense, they cater for retro lovers like myself and also cater for those looking for new and exciting games.

1. Pacman CE
2. Geometry Wars 2
3. Geometry Wars
4. Castlevania SOTN
5. SF II

Shadow Complex
Sonic games
Castle Crashers
SWOS
MvC2