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Why? Most of the older environments can be perfectly replicated in virtualized form...

Not perfectly enough for some uses.

For example, AFAIK there's still no emulator that can correctly run the 8088 mph demo.

There's also no PC manufactured in the past two decades that can run it. Real mode has nothing to do with the challenges necessary to emulate that demo.

(There's also the fact that the 8088 MPH demo is not a particularly compelling use case, even if the hardware were present.)

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