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As consoles get faster, accurate emulation becomes harder, but high-level emulation becomes much more accurate: programs get higher level, more dependent on library functions and (much) less on exact timing; hardware gets more uniform and programmable.

The Dolphin Wii emulator isn't perfect - it has the obscure bugs mentioned in the article - but unlike SNES emulators, it doesn't have a lot of game-specific hacks.

I don't think PS3 games use the same degree of hardware timing hacks so you can probably get high degrees of accuracy without the same level of overhead.

Not to mention DRM.. it's a serious problem.

Not in the current generation of console optical media. In the future it will be a rotten travesty as no one will ever physically own their games.

Though DLC is locked up as future consoles' content is likely to be.