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Nobody has ever said 32x support can't be done. It's just that it's considered very difficult or time consuming by DEVs to implement it and nobody has taken it up yet. That's a 32x emulator running within an emulator that's emulating Windows 98. I've ran Windows 98 on the Wii before and it can take soo long to boot just into Windows that using that to play 32x games would be a waste of time when 99% of the people more than likely have a laptop/PC sitting nearby.
I think another reason was when it was ported to the Wii, there wasn't enough memory to work with, not enough power to emulate an extra machine on top of the Genesis/Megadrive, I could be wrong though.