With old hardware, the sort I imagine 86Box is mainly used to emulate (it's how I use it, anyway), old OSes rely on specific behavior of old systems and peripherals that can't be easily virtualized through KVM + QEMU or the like. A mixture of processors being too fast and behaving subtly different, possibly due to differences in "undefined behavior".
I doubt there's a binary cutoff point where it's obviously more useful to virtualize or emulate, but it's obvious that emulating an 80386 is ideal, and virtualizing a "Core 2 Duo" is ideal, for running software from those respective periods. Is the Pentium III desirable to emulate, and simply not computationally feasible, or is this just people wanting to make cool things for cool things' sakes? Or a little of both?