I believe what the OP is trying to say is, what if this weren't an x86 emulator, but rather just a shim which allows ARM native assembly code to be being run in the context of iOS, only with traps that allow access to a kind of HAL within the context of the App .. meaning that instead of loading up an x86 image containing the Linux kernel and user space, it'd load an ARM-based Linux kernel and does the trapping required to give a native runtime experience .. underneath the iOS layers.
That would be quite feasible and not at all impossible. And given that the original author of this amazing project has the balls required to pull off a JIT-type scheme to do x86-ARM translations, quite probably within their reach.