I'm sure if they can make an adapter to use SIMM or DIMM RAM chips and bypass the bad memory chips. Use a SDCard instead of hard drives to store the OS and programs on.
I guess someone could just write an emulator for the Raspberry PI and Linux or something based on the design of the Xerox Alto and how the chips function.
It seems there are emulators or simulators for Xerox Alto out there already:
http://toastytech.com/guis/salto.html
http://altogether.brouhaha.com/
To help out would be the source code to the Xerox Alto:
http://www.computerhistory.org/collections/catalog/102706061
It was released and I am sure the team can make modifications to it to make it run with modern retro hardware.