As my question states,
Is it possible to virtualize PowerPC... FOR a PowerPC?
Consider that you're using Linux for PPC. You want to run apps written specifically for Mac OS 7.x through 9.2.2, all of which require PPC (let's say). Let's also say that you don't want to set up a dual-boot configuration on your PPC Mac because... well, you're lazy.
Emulators like Sheepshaver (for Linux on PPC) are fine for most basic needs, but for more intensive programs like games, complex math software, and pretty much anything that requires the MMU (memory management unit) will simply NOT run.
A PPC virtualizer written FOR the same PPC machine could allow those complex programs access to all the appropriate system resources it needs.... because its ALREADY THERE. There is nothing to be emulated!
So, even at least hypothetically... is it possible?