Nobody wants to work on hobby projects that have no chance of ever running on real hardware. What's the point then? Even if you'll never get to run your hobby OS on real hardware, that possibility still serves to motivate the developer. Nobody likes to work on things they know beforehand nobody will ever use for anything.
As an example, coding a toy shell in JavaScript that runs in a web browser and prints some text to a canvas is not the same as coding a toy shell that can touch the actual file system and be used for real work.
Life is too short to write toy software for emulators, I want to write software that people use and get something out of. I'm an engineer, if I buy a computer it's because I want to make cool things with it and for it, not because I want a dumb terminal to connect to some rented server.