first of all, liaqatali, did you completely missed the whole CPS2 thing?
now, for the rest of you. We just past a high point of the emulation scene (which is arguably the release of the first version of bleem!). Before that, emulation always meant "play the last generations of console or arcade games on your PC". In other words, emulation was always been not as good as the current generation video games.
I said bleem! was a high point because for the first time, emulation was _better_ than buying the current console. That was partly due to the abnormally long lasting of the Playstation, and partly due to the PC 3D accelerator boom. I must also point out that before bleem!, there was the Mac VGS, which meant near perfect emulation of the current console. Before that was the UltraHLE, and so on...
That however, is slowing down. We now have the Dreamcast and the PS2 not emulated yet, not to mention more work needed at PSX and N64 emu, as Disturbed said. The way I see it, the emulation scene is slowly returning to its previous normal state.