I know that the Wii U can run the games Naively, but regardless it is powerful so should be able to emulate pretty well. We're basically talking about Power PC emulation on Arm. Lakka already has Dreamcast games running at full speed, but then again the Dreamcast was slightly weaker than the PS2 which itself is weaker than the Dreamcast, so I guess we don't have the best comparison there.
hmm. Overall, you are right. We do need dynarec recompiler. The Switch, if using the same architecture, would easily run Wii and Wii U games, so obviously translating the code would improve things to playable levels.
For the networking capabilities though, at least, and getting all the other emulators to install as Homebrew in CFW with sound and networking support for multiplayer would still be nice.